The S&P 500 (SPX) surpassed the 6,000-point mark last week for the first time since February, extending a rally for shares that is been fueled by optimism about sturdy company earnings and economic data, as buyers await additional developments on the commerce entrance.

The benchmark index has rallied sharply from its early-April low to commerce simply 2.4% under the report excessive it established in mid-February. Final month, the S&P 500 posted its greatest month-to-month achieve since November 2023, as considerations concerning the Trump administration’s «Liberation Day» tariffs have subsided.

Beneath, we take a better take a look at the S&P 500’s chart and apply technical analysis to determine key ranges that buyers will doubtless be watching.

Pennant Sample Breakout

After climbing above a descending broadening formation, the S&P 500 trended sharply greater earlier than consolidating inside a pennant.

Extra just lately, the index broke out from the sample final week, indicating a continuation of its current transfer greater. In the meantime, the relative strength index confirms bullish momentum, however stays under its overbought threshold, offering ample room for additional upside.

Let’s determine two key overhead areas on the S&P 500’s chart and likewise find main support levels to observe throughout potential retracements.

Key Overhead Areas Price Monitoring

The primary key overhead space to trace sits round 6,100. This space might present resistance close to a trendline that connects a collection on peaks that shaped on the chart between December and February just under the index’s report excessive.

Traders can undertaking an upside goal above the report excessive by utilizing the bars sample device. When making use of the evaluation to the S&P 500’s chart, we extract the steep transfer greater following the breakout from the descending broadening formation and reposition it from the pennant’s breakout level. This tasks a goal of round 6,575, about 10% above Friday’s shut.

Main Help Ranges to Watch

Throughout retracements, buyers ought to initially watch the 5,770 stage. The index may discover help on this space close to the low of the pennant sample, which intently aligns with the 200-day moving average (MA) and a spread of corresponding buying and selling exercise on the chart extending again to September final 12 months.

Lastly, an in depth under this stage may see the S&P 500 revisit decrease help round 5,650. Those that put money into the index might search shopping for alternatives on this area close to the upward sloping 50-day MA and a horizontal line that hyperlinks a collection of price action on the chart between July and Could.

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As of the date this text was written, the creator doesn’t personal any of the above securities.