Current trend

The S&P 500 stock index continues to set new historical highs, reaching the level of 5341.00.

Positive macroeconomic statistics from the United States contribute to the growth of quotes: for example, Atlanta's gross domestic product (GDP) in the second quarter was 3.1%, with a forecast of 2.6%. The number of people employed in the non-agricultural sector increased by 272.0 thousand in May, while analysts expected 182.0 thousand, and the average hourly wage adjusted from 4.0% to 4.1% YoY with preliminary estimates of 3.9% and from 0.2% to 0.4% MoM while experts assumed 0.3%. Such dynamics indirectly indicates the persistence of inflationary risks, which prevent the US Federal Reserve from returning to a softer monetary policy and may mean that this year the monetary authorities will reduce the interest rate only once at the end of the year. Optimistic data does not allow shares of companies, especially in the technology sector, to decline, supporting the positions of the S&P 500.

The long-term trend is upward. At the moment, the price is trying to return under the resistance level of 5341.00; if successful, a downward correction may begin, the target of which will be the support level of 5221.00, from where it is worth considering new long positions with the target of 5341.00. If the price consolidates above the 5341.00 mark, the movement will continue to the 5450.00 area, and the key trend support will shift to 4943.00. The RSI indicator (21) is in the neutral zone, allowing to plan both new purchases and new sales.

The medium-term trend is upward. As part of the growth last week, the price updated the May maximum in the area of 5350.00, however, buyers failed to consolidate above this level, and it is now being adjusted to 5263.00–5251.00. If this zone is tested, it is worth considering long positions with the target at the June high of 5378.00. If the support of 5263.00–5251.00 is broken down, the correction will continue to the trend border of 5145.00–5121.00, from where purchases with the target of 5378.00 are likely.

Support and resistance

Resistance levels: 5341.00, 5450.00, 5551.00.

Support levels: 5221.00, 5117.00, 4943.00.

Trading tips

Long positions can be opened from the level of 5221.00 with the target of 5341.00 and stop-loss of 5180.00. Implementation period: 9–12 days.

Short positions can be opened below 5180.00 with the target of 5060.00 and stop-loss of 5230.00.