U.S. Market Performance at Closing:

U.S. stock markets experienced a collective rise at the beginning of the week, primarily supported by a strong rebound in the technology sector and artificial intelligence stocks such as Broadcom.

• Closing Price: 7,537.43 points

• Daily Change: +54.19 points (+0.72%)

• Opening Price: 7,506.96 points

• Session High: 7,551.31 points

• Session Low: 7,500.97 points

Technical Analysis and Current Situation of the Index

The index is currently in a cautious upward phase driven by selectivity and narrow range. After a period of sideways fluctuations during June between levels of 7,300 and 7,600 points, the index successfully closed on Monday, breaking out of the price congestion to trade at 7,537.43.

This rise does not reflect the strength of the market as a whole but is a result of the rebound in technology and artificial intelligence stocks after their recent correction, while the rest of the traditional market sectors suffer from weak liquidity and tactical retracement.

Pivot Point: 7,529.90

Upcoming Support and Resistance Levels

Resistance Levels

• First Resistance: 7,558.84 (breaking this opens the way for a retest of the session's highest point).
• Second Resistance: 7,580.24 (approaching the annual historical peak).
• Third Resistance: 7,630.59 (new exploratory area in case of a momentum breakout).

Support Levels

• First Support: 7,508.50 (approximately matches the previous opening price).
• Second Support: 7,479.56 (an important level to break the recent upward streak).
• Third Support: 7,429.22 (medium rebound area).

Expected Scenarios for the Upcoming Period

Scenario One: Continuation of Historical Rise and Breaking Peaks

If the index successfully breaks the nearby resistance barrier at 7,570  points and then surpasses the fixed historical peak at 7,613 points, this breakout will immediately open the door to explore new price areas starting from 7,650 up to the target ranges for investment funds for 2026 at 7,750 - 7,800 points.

Scenario Two: Technical Correction and Re-testing Support

If the index fails to break the levels of 7,570 - 7,600 points, it may retreat to break below 7,500 points and enter a healthy corrective wave targeting a test of areas from 7,400 to 7,350 points.

Important Guidelines and Strategy for Traders

Activate a trailing stop-loss order as the market approaches critical historical areas to protect your floating profits from volatility, and periodically raise the stop-loss order in line with the rise to automatically secure a portion of the profits.

Investing in technology stocks that have doubled in price and are trading at record overbought levels is currently a major risk; wait for correct pullbacks towards technical support levels instead of buying at the peak.

Since the current rise relies on a limited number of leading companies, it is advisable to reduce the risk per trade to (1% - 2%) of the total portfolio to ensure account stability in case of any sudden profit-taking.

Conclusion

The index is in a short-term upward trend, and the current rise is selective and narrow in range, primarily driven by the rebound of major technology stocks and artificial intelligence, while the rest of the traditional market sectors experience mixed performance.

Continue with bullish trades while raising the trailing stop-loss order in line with the increase; avoid chasing prices at the peaks and keep a portion of liquidity (cash) tactically in anticipation of the second-quarter earnings season and the Fed's decision.

To know the current recommendations, subscribe to the Pro site or one of the portfolios.

For Pro subscription 👈 https://usa.bullmarkets.today/subscribe

For Expert Portfolios subscription 👈 https://usa.bullmarkets.today/premium-portfolios

To follow the market yourself with the smart strategy on the site, subscribe to Standard and monitor the technical scan, early and confirmed buying; reap your profits and do not get caught up in following early and confirmed selling.