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.

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.