4 min readWe’re currently seeing very strong, bullish momentum in the S&P 500 (SPX), supported by fresh optimism coming from a press conference held by the US Treasury Secretary. During the briefing, several positive remarks were made about the evolving relationship between the US and China, particularly around the ongoing tariff situation. Judging by the market’s reaction, traders appear to be welcoming the tone of potential de-escalation.
Looking at the chart, the S&P 500 has now broken above the 5,900 mark and is testing what could be considered the final line of defense for the bears. If price manages to push through this zone and start building structure above it, we’ll have a clear breakout across multiple time frames, shifting the broader market outlook back into confirmed bullish territory.
It’s also worth noting the ADX indicator at the top of the chart, currently sitting just below 19. According to the ADX, this suggests that the strength of the trend is still weak, but we are now seeing early signs of the ADX starting to bottom out and potentially curl upward. Historically, this kind of early slope in the ADX can often signal the beginning of a new, stronger trend. If momentum continues to build here, it could mean the S&P 500 is only just getting started on its next leg higher.
If the current sentiment holds, especially around the idea that tariffs may be reduced or rolled back, this rally could accelerate. However, as always, market conditions can change quickly. For now, the risk-on appetite is clear, and buyers remain in control.
Should price fail to hold above this key zone, the first downside level to watch is around 5,690, a minor breakout zone that also lines up with today’s gap-up in price. That level could serve as a short-term support area on any pullback.
If the rally continues, the next resistance sits just above at 5,930. A clean break above that would signal fresh bullish momentum and potentially clear the path for new all-time highs.
The next few sessions will be critical, a confirmed breakout here could change the landscape moving forward.
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