S&P 500 Index Performance at Close:

The S&P 500 index closed the week on a strong positive note, achieving an unprecedented new record. Despite the volatility that prevailed mid-week, optimism in the technology sector and quarterly earnings reports ultimately tipped the balance in favor of the bulls.

• Closing Price: 7,165.08 points.

• Daily Change: +55 points (+0.80%).

• Highest Level During the Session: 7,172.15 points.

• Lowest Level During the Session: 7,101.30 points.

• Opening Price: 7,112.45 points.

The week started with a state of heightened caution as geopolitical tensions escalated and Brent oil prices surpassed the $100 mark, raising fears of a return to inflationary pressures. However, the picture began to change with the succession of corporate reports.

The technology sector was the main driver and true hero of the week, aided by Intel's results, whose stock jumped approximately 23.6% in a single day, pushing the index toward historical levels. Despite the pressures faced by IBM's stock due to concerns over traditional software models being disrupted by artificial intelligence, the tech sector in general remained resilient.

We are now at the peak of earnings season, with around 20% of index companies reporting their results this week. Statistics indicate that 84% of these companies exceeded analysts' estimates, with earnings growing by 15.1% year-over-year, reinforcing confidence in the economy's robustness despite high interest rates.

Technical Indicators

Yields saw a slight increase as the 10-year yield stabilized at 4.31%, reflecting investors' expectations that interest rates will remain high for a longer period.

The Fear Index (VIX) dropped to levels below 18.5 during the week, indicating a state of relative calm on Wall Street despite geopolitical noise.

Technical Situation

These levels are key for movements in the coming days:

• First Resistance (R1): 7,250 points. (Represents a very close psychological barrier and the highest liquidity point seen in futures recently).

• Second Resistance (R2): 7,300 points. (Considered the next main target, and breaking through it means the index enters a new explosive upward wave).

• First Support (S1): 7,100 points. (Medium support area, and breaking through it may lead to a return to test weekly opening levels).

• Second Support (S2): 6,980 points. (Very strong support; as long as the index remains above this level, the overall trend remains upward in the medium term).

Although the index is at record levels, an important technical note is that only about 53% of the companies making up the index are trading above their 50-day average.

Important Guidance for Traders

Look for slight corrective movements or a retest of support levels like 7,000 before building new positions; buying at the top is like running after a fast train that could slow down at any moment.

If you are profitable in previous trades, consider cashing out a portion of your profits, such as 20-30% of your position at levels around 7,200. This gives you peace of mind and liquidity to seize opportunities if a sudden correction occurs.

Since the trend is strongly upward, raise your stop-loss level behind the price at a calculated distance. This ensures that you protect your profits in case the market suddenly decides to reverse direction due to unexpected economic data.

Conclusion

The situation is very positive in terms of trend, but the index is technically inflated, so caution is advised against quick profit-taking that may target a return to the 7,000 levels for speculators.

As for investors, the upward trend remains intact as long as we stay above the 6,900 point level at weekly close.

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