S&P 500 Index Performance at Close:

Week ending on: Friday, May 29, 2026

The past week, due to Memorial Day holiday, witnessed a continuation of strong upward momentum, allowing the index to finish its ninth consecutive week of gains, achieving new record levels and coming very close to the significant psychological barrier of 7600 points.

• Closing Price: 7,580.06 points.

• Daily Change: +16.43 points (+0.22%).

• Highest Level During Session: 7,599.38 points.

• Lowest Level During Session: 7,563.55 points.

Key Drivers of the Week:

Momentum in the Technology and AI Sector: The technology sector led the market with an increase of nearly +4.5% this week, supported by strong earnings results and optimistic forecasts (such as Dell's stock jumping by 32.8%).

Economic Data (PCE & GDP): The Core Personal Consumption Expenditures (PCE) index showed a month-on-month growth of +0.2%, which was below expectations (+0.3%), easing concerns, although annual inflation is still recording its highest levels in 3 years due to previous energy prices.

Geopolitical Landscape and Bond Yields: News of a draft agreement to extend the ceasefire between the U.S. and Iran for 60 days contributed to a nearly 10% drop in oil prices, pushing the yield on 10-year U.S. Treasuries down to 4.45%, providing a good boost for rising stocks.

Technical Analysis and Current Status of the Index

The RSI index has stabilized at levels of 73, which technically indicates that the index has entered the overbought zone. Although being above 70 does not necessarily mean an immediate reversal of the trend, it does call for caution against any sudden profit-taking corrections.

The S&P 500 is currently moving in a price discovery phase above all major moving averages (50 and 200-day).

Expected Scenarios for Next Week

Historically, June is known as a seasonally quiet month, but the current momentum may challenge seasonal factors. Based on closing data, we are monitoring two scenarios:

Scenario One: Breaking the psychological barrier and continuing the upward trend, maintaining trades above the nearby support levels of 7,560 - 7,520 points with the opening of June trading.

Scenario Two: Healthy technical correction and profit-taking, failure to trade above 7,600 points and the appearance of sell signals on smaller timeframes.

Important Guidelines for Traders and Investors

Avoid chasing prices as the index reaches consecutive historical peaks and with the RSI reaching 73. It is advisable not to enter with full liquidity at current prices and to wait for temporary pullbacks to build new positions.

Activate trailing stop-loss orders to protect your profits accrued over the past nine weeks. Adjust your stop-loss levels for open trades in line with new peaks.

The technology sector outperformed sharply against a decline in defensive sectors and the energy sector this week. Ensure your portfolio is balanced and not overly exposed to a single sector to avoid sudden profit-taking volatility.

Keep an eye on the 10-year yield as long as it stabilizes below 4.50%. This provides a green light for growth stocks to continue performing positively.

Conclusion

Do not chase prices at the peak, and activate trailing stop-loss orders to protect your profits. Wait for temporary pullbacks to safely open new buy positions.

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