Facts

• The price is currently trading below both the 50-hour EMA and the 200-hour EMA .
• The index staged a strong rebound from around 7,473 after the U.S. market opened on Friday, July 17 .
• The RSI (14) on the hourly chart climbed from around 19 to above 40 between 10:00 and 16:15 .
• According to FactSet , in June investors expect S&P 500 companies to report 23.6% year-over-year earnings growth in Q2 2026 .

Recommendation: Long US500 at market price SL: 7,473 TP: 7,600 Opinion The recent correction in technology stocks has weighed on investor sentiment, but upward earnings revisions and strong Big Tech results could support a rebound on Wall Street. So far, the earnings season has been broadly solid despite a few disappointments, including Netflix, with those misses more than offset by strong reports from companies such as BlackRock and Travelers. At the same time, the renewed U.S.-Iran conflict appears to be having a meaningful but much more limited impact on energy markets than during the spring escalation. July’s preliminary University of Michigan survey surprised to the upside across almost all major categories. Consumer sentiment (54.4), current conditions (54.9), and consumer expectations (54.0) all exceeded market forecasts. The survey pointed to a second consecutive monthly improvement in confidence, largely driven by lower gasoline prices earlier in the month and improving expectations for both the economy and durable goods purchases. Meanwhile, one-year inflation expectations declined from 4.6% to 4.2% , while long-term inflation expectations remained stable at 3.3% , below market expectations, suggesting that inflation pressures are gradually easing. This combination of stronger consumer confidence and lower inflation expectations is supportive for equities, as it reduces the likelihood that the Federal Reserve will need to maintain a restrictive monetary policy for longer. Improving consumer sentiment also strengthens the outlook for household spending, which accounts for nearly 70% of U.S. GDP , supporting revenue expectations for S&P 500 companies. The main caveat is that most survey responses were collected before gasoline prices rebounded following the renewed escalation between the U.S. and Iran, meaning the sustainability of the improvement will depend on developments in energy markets. It is also worth noting that the latest U.S. CPI and PPI reports both came in below market expectations, reinforcing the case for moderating inflation. Despite the recent pullback, US500 still has a realistic path back toward its record highs, particularly if the current correction in semiconductor stocks—which has already reached 30% or more in some names—begins to stabilize. We therefore recommend opening a long position on US500 , targeting 7,600 , which corresponds to the beginning of the latest bearish impulse and a key resistance level. A stop-loss at 7,473 is recommended, marking an important technical support zone defined by previous price reactions.

Source: xStation 5