The S&P 500 reached yet another record high on Monday - is there any upside left?
The S&P 500 Index closed 0.52% higher on Monday after reaching a new all-time high of 6,215.08. The market extended last week’s uptrend, supported by easing tensions in the Middle East and optimism surrounding potential new tariff-related agreements.
However, this morning the S&P 500 is likely to open 0.5% lower, as indicated by futures contracts. I think this will be a corrective move within an ongoing uptrend.
Investor sentiment has slightly improved, as reflected in last Wednesday’s AAII Investor Sentiment Survey, which reported that 35.1% of individual investors are bullish, while 40.3% are bearish.
The S&P 500 reached yet another record high yesterday, as the daily chart indicates.
S&P 500 Futures Contract Remains Above 6,200
This morning, the S&P 500 futures contract is trading above the 6,200 level after pulling back from yesterday’s high of around 6,266.
Support is around 6,200, marked by Friday’s trading range, while resistance is now in the 6,250-6,270 zone.
Markets remain highly sensitive to geopolitical developments and could stay volatile in the near term.
Conclusion
The S&P 500 is expected to open lower this morning as investors look to take some profits off the table following the recent rally. The market is awaiting Fed Chair Powell’s speech at 9:30 a.m., along with the ISM Manufacturing PMI and JOLTS Job Openings releases at 10:00 a.m.
I think that in the short term, overbought technical conditions may lead to a period of consolidation or a mild pullback. However, no clear bearish signals are currently evident.
Here’s the breakdown:
- The S&P 500 reached yet another new record high yesterday, extending gains for those who bought based on my Volatility Breakout System.
- There are no clear bearish signals yet, but a deeper downward correction is not out of the question at some point.
The full version of today’s analysis - today’s Stock Trading Alert - includes the additional stock trading ideas and the current S&P 500 position. I encourage you to subscribe and read the details today (with a single-time 7-day free trial). Stock Trading Alerts are also a part of our Diamond Package that includes Gold Trading Alerts and Oil Trading Alerts.
And if you’re not yet on our free mailing list, I strongly encourage you to join it - you’ll stay up-to-date with our free analyses that will still put you ahead of 99% of investors that don’t have access to this information. Join our free stock newsletter today.
Thank you.
Paul Rejczak
Stock Trading Strategist
Recommended for You
- Tax-Optimized Legacy Planning: How Physical Gold IRAs Work in 2025 Learn how forward-thinking investors are protecting generational wealth through tax-advantaged precious metals strategies that function independently of market volatility.
- Volatility Breakout System: Paul's Proprietary Trading Approach Discover how this market-tested trading system has outperformed the S&P 500 by identifying key turning points and generating precise entry signals.