S&P 500 Maintains Uptrend — But for How Long?

As the chart of the S&P 500 (US SPX 500 mini on FXOpen) shows, price movements in June continue to form an upward trend (highlighted in blue).

The bullish momentum is being supported by:
→ News of a potential trade agreement between the United States and China;
→ The latest inflation report. Data released yesterday showed that the Consumer Price Index (CPI) slowed from 0.2% to 0.1% month-on-month.

President Donald Trump described the inflation figures as “excellent” and said that the Federal Reserve should cut interest rates by a full percentage point. In his view, this would stimulate the economy — and serve as another bullish driver.

However, as illustrated by the red arrow, the index pulled back yesterday from its highest level in three and a half months, falling towards the lower boundary of the channel. This decline was triggered by concerning developments in the Middle East. According to media reports, the US is preparing a partial evacuation of its embassy in Iraq, following statements by a senior Iranian official that Tehran may strike US bases in the region if nuclear talks with Washington fail.

Technical Analysis of the S&P 500 Chart

Currently, the price remains near the lower boundary of the ascending channel, reinforced by the psychologically significant 6,000-point level.

However, note that line Q — which divides the lower half of the channel into two quarters — has flipped from support to resistance (as indicated by black arrows). This suggests increasing bearish pressure, and there is a possibility that sellers may soon attempt to push the price below the channel support.

Be prepared for potential spikes in volatility on the E-Mini S&P 500 (US SPX 500 mini on FXOpen) chart as markets await the release of the Producer Price Index (PPI) at 15:30 GMT+3 today.

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