SPX continues to present a constructive bullish structure, with buyers maintaining control of the broader trend. Rather than showing signs of meaningful capital withdrawal, the recent pullback appears to be giving investors another opportunity to gain exposure at more attractive valuations.
From an investment perspective, earnings growth and continued AI-related investment remain important drivers of demand for U.S. equities. Large-cap technology companies are still attracting significant capital as investors seek businesses capable of converting AI infrastructure spending into long-term revenue and earnings growth. This underlying demand continues to provide a solid foundation for SPX to trade at higher levels.
Technically, SPX remains within the ascending channel that has guided price since April. The index is now approaching the 7,630–7,645 support area, close to the lower boundary of the channel. This is an important area for buyers to absorb available supply and rebuild positions. A strong reaction from this zone would support the formation of another higher low and keep the broader bullish structure firmly in place.
My primary scenario remains a continuation to the upside. If buyers successfully defend the current support area and momentum begins to recover, SPX could make another attempt toward 7,800. A convincing move through that level would strengthen the trend and create room for an extension toward 8,000, near the upper portion of the ascending channel.
Overall, I continue to favor higher prices while the broader uptrend remains intact. The combination of persistent buying interest, earnings growth, and capital allocation toward leading U.S. companies suggests that investors remain willing to maintain equity exposure. For me, the better approach is to use pullbacks as opportunities to look for BUY positions rather than chase short-term strength, while staying aligned with the dominant trend.
From an investment perspective, earnings growth and continued AI-related investment remain important drivers of demand for U.S. equities. Large-cap technology companies are still attracting significant capital as investors seek businesses capable of converting AI infrastructure spending into long-term revenue and earnings growth. This underlying demand continues to provide a solid foundation for SPX to trade at higher levels.
Technically, SPX remains within the ascending channel that has guided price since April. The index is now approaching the 7,630–7,645 support area, close to the lower boundary of the channel. This is an important area for buyers to absorb available supply and rebuild positions. A strong reaction from this zone would support the formation of another higher low and keep the broader bullish structure firmly in place.
My primary scenario remains a continuation to the upside. If buyers successfully defend the current support area and momentum begins to recover, SPX could make another attempt toward 7,800. A convincing move through that level would strengthen the trend and create room for an extension toward 8,000, near the upper portion of the ascending channel.
Overall, I continue to favor higher prices while the broader uptrend remains intact. The combination of persistent buying interest, earnings growth, and capital allocation toward leading U.S. companies suggests that investors remain willing to maintain equity exposure. For me, the better approach is to use pullbacks as opportunities to look for BUY positions rather than chase short-term strength, while staying aligned with the dominant trend.
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Educational only. Not financial advice. Trading involves risk.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.