S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- Bullish engulfing candle breaks descending trendline near $5,455.

- RSI momentum confirms strength, with no immediate divergence.

- Price targets $5,670 if $5,453 support holds.

The S&P 500 has broken out above a long-standing descending trendline resistance near 5,455, confirming a bullish breakout from a falling wedge pattern. Price action shows a convincing close above the 50-period SMA, now at 5,325, signaling a shift in short-term momentum.

This technical milestone is reinforced by a higher low structure and a fresh bullish engulfing candle that cleared a week-long consolidation range.

RSI stands at 66.25, approaching overbought territory but not yet flashing divergence. This RSI level—paired with the MACD signal line crossing above zero (not shown)—supports the case for further upside.

Momentum has been building gradually since the reversal from 5,102, marked by three white soldiers near the April 19–22 lows—an optimistic reversal signal rarely seen in isolation.

The breakout candle itself is a strong-bodied bullish candle, closing well above resistance without significant upper wicks—often a sign that buyers are confident and in control. If price holds above 5,455, we expect the rally to extend toward 5,579 and eventually test the key resistance at $5,670.

However, a failed retest below 5,453 would invalidate the breakout and expose the index to downside risk back toward the 5,325 support level. In this case, bulls will want to see a defense of the rising trendline from the April lows.

S&P 500 - Trade Ideas

Entry Price – Buy Above 5453

Take Profit – 5670

Stop Loss – 5353

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$2170/ -$1000

Profit & Loss Per Mini Lot = +$217/ -$100