Technical Analysis

S&P500 (SPX) Price Analysis – July 06, 2023

By LonghornFX Technical Analysis
Jul 6, 20233 min

Daily Price Outlook

On Thursday, the SPX Index is -0.20% up from its previous 24-hours level at $4446.82. Carnival Corp. & PLC, with a 67.7% increase to a $23.46 billion market value as of June 30, was the best-performing S&P 500 company in June.

US Stocks Rally in June, Propelling S&P 500 to Record Highs

According to a report released by S&P Global, US stocks displayed a powerful resurgence in June, with all 11 sectors of the S&P 500 experiencing gains. This remarkable rebound led to the S&P 500 reaching new heights, surging by 6.5% to an all-time high of 4,450.38. While the Dow Jones Industrial Average performed relatively weaker with a 4.6% increase, smaller-cap stocks stole the spotlight, recording the highest gains, with the Russell 2000 surging by 7.9%.

The consumer discretionary sector emerged as the frontrunner, posting an impressive 12.0% gain, followed closely by the industrials sector at 11.2% and the materials sector at 10.8%.

Carnival Corp. & PLC stood out as the top-performing stock in June, witnessing a substantial 67.7% surge in market capitalization. The company's positive earnings report, including better-than-expected adjusted losses and exceeding revenue projections, fueled its remarkable recovery. Conversely, Dollar General Corp. struggled, experiencing a significant decline of 15.6% due to disappointing earnings.

Overall, this robust performance across all sectors of the S&P 500 in June revitalized investor confidence, highlighting the resilience and attractiveness of the US stock market as a lucrative investment option. This report caped further losses on S&P 500 Index on Thursday.

Wall Street Retreats as Fed Meeting Minutes Signal Possible Rate Hikes

The investors were closely analyzing the Federal Reserve meeting minutes for insights into future monetary policy today. The Dow Jones Industrial Average fell by 0.38%, shedding 129.83 points to close at 34,288.64. Similarly, the S&P 500 index slipped by 0.2%, settling at 4,446.82.

SPX Price Chart – Source: Tradingview

S&P500 (SPX) - Technical analysis

On Thursday, the S&P 500 index is currently in an exciting phase, as it consolidates above a key support area of 4,440. The candles closing above this level indicate a strong possibility of the ongoing bullish trend continuing its upward journey. It's like the index is putting on a bullish show for us!

To further confirm this breakthrough, we can see a bullish candle that has closed above the mentioned support level. This adds more fuel to the bullish fire. As we look ahead, our eyes should be on the next resistance levels at 4,511 and 4,525. These levels might act as hurdles for the index as it reaches for new heights.

However, we must also keep in mind that a breach of the support at 4,440 could have a significant impact, potentially triggering a substantial downward movement. In such a scenario, we anticipate a strong support level around 4,395 coming into play.

Given all this excitement, it becomes crucial for us to closely monitor the 4,440 level. It holds the potential to be a turning point for today's trading activities. So let's keep our eyes peeled and enjoy the thrill ride of the S&P 500 index!



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