The S&P 500 booked its first monthly decline since March in June, yet the index posted its best quarter since Q2 2020 and quickly reclaimed its 50-day moving average. Reuters analysts read the swift recovery as a bullish signal, with bulls eyeing resistance at 7,530 and bears watching 7,385.
The S&P 500 recovered its footing almost as fast as it lost it. After briefly dipping below its 50-day moving average for the first time since early April, the benchmark climbed back above the level and has held there since — the kind of swift recovery traders generally read as a sign that buyers remain in control.
A strong quarter behind a weak month
June brought the index its first monthly decline since March. But the broader picture still points higher: the S&P 500 surged more than 14% in the second quarter, its best quarterly performance since the pandemic-era rebound of mid-2020. It also gained about 9.5% in the first half of 2026, its strongest first-half showing since 2024’s 14.5% run.
The moving average tells a similar story. The 50-day line — a rolling gauge of momentum — now sits near 7,385, and the index reclaiming it after that brief slip is what analysts flag as bullish.
Where the battle lines sit
The index currently trades around 7,483, roughly 1.7% below its early June record close of 7,609.78 and down 1.8% from its 7,620.90 record intraday peak. If buyers press higher, the first resistance sits near 7,530, followed by 7,578, with the psychologically important 8,000 level in view on fresh highs.
Yet the picture could still darken. A slip back below the rising 50-day line risks stalling the rally, and while support near 7,294 could spark a positive reaction, a deeper slide toward 7,238 or the 7,000 zone cannot be ruled out.
Source: Reuters
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