S&P 500: Current dynamics and near-term prospects

Yuri Papshev Independent Analyst

Investors in the American stock market remain optimistic by buying American securities. They and big business seem to have adjusted to high interest rates while continuing to finance the American economy. Moreover, according to Fed officials, the period of rate stabilization is already close, when it will be maintained at current levels for some period of time, and the recent banking crisis seems to have been brought under control by financial institutions that have expressed their willingness to provide banks with unlimited liquidity.

Despite the "hawkish" statements of the Fed representatives regarding the prospects for monetary policy, economists believe that it remains still soft, given high inflation and a strong labor market. In addition, the US stock market seems to have turned "north" again after the March Fed meeting, when economists' opinions became more active that the Fed's monetary policy tightening cycle would soon be put on pause. The head of the US Central Bank, Powell, noted then that the recently obtained inflation data "really indicate a long-awaited reduction in price pressure," although, in his opinion, "much more evidence is needed to be sure of a decrease in inflation."

Anyway, at the moment, S&P500 futures are trading near the 4195.00 mark. The breakdown of this local resistance level and last month's maximum of 4236.00 will be additional evidence in favor of the revival of the S&P500 global bullish trend.

Nothing threatens long positions above the important support level 4120.00.

In general, the S&P500 continues to trade in the global bull market zone, being well above the support levels of 2900.00, 2600.00, separating the global bull market from the bear market, also confirming the viability of the well-known long-term "buy and hold" strategy.

Support levels: 4164.00, 4120.00, 4100.00, 4060.00, 4050.00, 4000.00, 3940.00, 3800.00, 3780.00, 3700.00, 3600.00, 3505.00.

Resistance levels: 4195.00, 4236.00, 4324.00, 4540.00, 4630.00, 4810.00.

Author

Yuri Papshev

Independent Analyst

Independent trader and analyst at Forex market. Trade experience - more than 10 years. In trade Yuri Papshev uses a combination of fundamental and technical analysis.

GBP/USD drops to fresh weekly low below 1.3400

GBP/USD turns south in the second half of the day on Tuesday and trades at a fresh weekly-low below 1.3400 as the Middle East uncertainty causes investors to adopt a cautious stance. Earlier in the day, the data from the UK showed that the Unemployment Rate remained at 4.9% in the three months to May, compared with expectations of 5%, but failed to support the British Pound.

EUR/USD keeps range above 1.1400 after German ZEW

EUR/USD struggles to find direction and fluctuates in a narrow channel above 1.1400 on Tuesday, as the US Dollar (USD) stabilizes following Monday's rebound. The uncertainty around the US-Iran conflict limits the pair's upside but traders refrain from taking large positions ahead of the European Central Bank policy announcements on Thursday, which could drive the Euro's near-term valuation.

Gold clings to moderate gains above $4,050

Gold gains traction following Monday's choppy action and advances toward $4,100 on Tuesday. However, the uncertainty surrounding the conflict in the Middle East and growing expectations for a hawkish Federal Reserve policy outlook make it difficult for the precious metal to gather bullish momentum in the near term.

Bitcoin extends advance as ETF inflows, Iran war mediators' proposal lift risk mood

Bitcoin extends its gains, trading above $65,800 after closing above the key technical hurdle the previous day. The bullish price action is further supported by the return of institutional demand, with spot Exchange Traded Funds continuing their inflows on Monday. In addition, the renewed hopes for peace between the US and Iran have lifted risk sentiment, providing an additional tailwind for the Crypto King.

Buy the dip on the Dow Jones and S&P? Forex Trading Gold descending triangle

Trading during a war, a pandemic, during trade disputes, and other geopolitical events, especially when some major players are sociopathic, can be quite challenging. The Iran war is no exception. The Iran war is no exception.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.