S&P 500 Index Performance at Close:

The index recorded new all-time highs supported by a strong earnings season and positive geopolitical developments:

• Closing Price: 7,398.93 points.

• Daily Change: +61.82 points (+0.84%).

• Highest Level During Session: 7,401.50 points.

• Lowest Level During Session: 7,362.97 points.

The weekly performance achieved weekly gains of 2.3%, marking the sixth consecutive week of gains, the longest winning streak since 2024.

Key Influencing Factors

The technology sector continued to lead the market, with 26 companies within the index reaching record levels, including Alphabet and Apple. Optimism surrounding the AI boom and massive spending on data centers remains a key driver of liquidity.

The current first-quarter earnings season is the strongest in over four years, with index companies’ earnings expected to rise by nearly 29% year-over-year, and over 83% of the companies that have reported so far exceeded analyst expectations.

Technical Situation

• Overall Trend: Strongly Bullish while remaining above key psychological support levels.

• Next Resistance: The index is now facing a psychological resistance zone at 7,450 - 7,500 points.

Warning Note: Some reports, such as from Bank of America, indicate a potential decline in buying momentum due to reaching overbought levels, which may necessitate caution against technical corrections for profit-taking in the upcoming week.

First Resistance (R1): 7,412.57 (very close to the highest level recorded on Friday, 7,401).

Second Resistance (R2): 7,426.21 (considered a real testing area for buying momentum).

Third Resistance (R3): 7,451.01 (represents an upward target if optimism continues next week).

First Support (S1): 7,374.13 (the nearby pivot point to ensure the stability of the upward trajectory).

Second Support (S2): 7,349.33 (a strong support level corresponding with previous demand areas).

Third Support (S3): 7,335.69 (breaking this level could shift the short-term positive outlook to neutral).

Expected Scenarios

Bullish Continuation Scenario

Continuing positive corporate earnings and a decrease in inflation concerns, along with the stability of the temporary truce in Eastern Europe and breaking the 7,412 barrier and holding above it, would quickly open the path for testing the 7,450 - 7,500 area.

Technical Correction Scenario

The Relative Strength Index (RSI) reaching overbought levels above 70 and traders’ desire to liquidate some of the profits gained in the past six weeks could lead to a quiet decline of the index from the 7,400 levels to test support areas at 7,374 or even 7,350.

Sideways Fluctuation Scenario

Investors are watching for detailed economic data or statements from members of the U.S. Federal Reserve regarding interest rate direction in the second half of 2026, with trading confined to a narrow range between 7,360 and 7,410 points without a clear direction.

Conclusion

The market is in a cautious optimistic state, with fundamentals pushing upward, but technicals indicate overbought conditions that require a breather. Next week is a test of stability above 7,400.

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