FXOpen
The S&P 500 index (US SPX 500 mini on FXOpen) started the week by reaching a fresh all-time high. As shown on the chart, the index hit 6,210 points earlier this morning.
In addition to a reduced risk of US involvement in a large-scale war in the Middle East, market optimism has been fuelled by:
→ Tariff-related news. Last week, the US President announced the signing of a trade deal with China, while Treasury Secretary Scott Bessent expressed hope that the US would conclude trade negotiations with over a dozen countries by early September.
→ Strong corporate performance. On Friday, Nike (NKE) shares led the stock market, rising by more than 15% following an earnings report that exceeded analysts’ expectations. This could be boosting investor sentiment ahead of the upcoming earnings season.
Technical Analysis of the S&P 500 Chart
Evaluating the 4-hour chart of the S&P 500 index (US SPX 500 mini on FXOpen) in the context of June’s price movements reveals key reference points (marked on the chart) that outline an ascending channel. A consolidation zone, marked with an arrow, highlights a temporary equilibrium between supply and demand—after which buyers gained the upper hand, pushing the price upward.
It is possible that the ongoing bullish momentum could carry the price toward the upper boundary of the channel. However, attention should be paid to the RSI indicator, which suggests the market is heavily overbought; in fact, Friday’s reading marked the highest level of the year. In such conditions, a price correction cannot be ruled out—potentially back toward the local ascending trendline (shown in orange).
Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Gold Price Analysis: Market Awaits Key Updates
The ADX indicator on the 4-hour XAU/USD chart has dropped to a multi-month low, signalling the absence of a clear trend.
At the same time, a technical assessment of price movements allows for the construction of a symmetrical triangle
NIO Shares Drop Below $5
As the chart shows, the share price of NIO Inc. (NIO), the Chinese manufacturer of “smart” electric vehicles, has fallen by roughly 30% over the past month and this week slipped below $5 for the first time since mid-August.
Among
Dollar under Pressure after ADP as Investors Brace for Key Data Releases
The US dollar continues to retreat following weaker-than-expected ADP figures, which strengthened expectations of a softer Federal Reserve stance. The US private sector created far fewer jobs than forecast, a development markets interpreted as a sign of potential labour-market cooling