S&P 500 Index May Lose Upward Momentum

Yesterday’s inflation data release held no major surprises, as the actual Consumer Price Index (CPI) figures came in close to analysts’ forecasts.

According to Forex Factory:
→ Annual CPI: actual = 2.3%, forecast = 2.4%, previous = 2.4%;
→ Monthly Core CPI: actual = 0.2%, forecast = 0.3%, previous = 0.1%.

Overall, stock indices rose yesterday, but according to media reports, this momentum may begin to slow in the near future:
→ UBS analysts downgraded their rating on US equities from “attractive” to “neutral” following the recovery from early April lows;
→ Goldman Sachs analysts believe that the US stock market rally could stall at current levels. In their view, the S&P 500 (US SPX 500 mini on FXOpen) is likely to reach 5900 over the next three months.

Technical Analysis of the E-Mini S&P 500 Chart

The chart provides more reasons to suggest that the current pace of growth may begin to slow.

Firstly, the index has entered a broad range between 5800 and 6120, where it spent a prolonged period during late 2024 and early 2025. This is a zone (highlighted in purple) where supply and demand previously reached a stable equilibrium — and similar balance could potentially emerge again.

Secondly:
→ the slope of the current upward channel (marked in black) appears excessively steep;
→ the RSI indicator points to a divergence;
→ the psychological level of 6000 may act as resistance.

Given the above, special attention should be paid to the scenario in which the S&P 500 (US SPX 500 mini on FXOpen) forms a short-term correction before the end of the month.

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