The S&P 500 (INDEXSP: .INX) index has been on a tear since the start of 2023. The reason behind its surge is a magnificent rally in the US equities, which has sent most stocks to their fresh 52-week highs. Tech stocks appear to be one of the best-performing sectors.
On Monday, S&P 500 index rose by 0.15% after a minor pullback at the end of last week. The index closed the first trading session at 4,588 points. The weekly chart reveals that the index currently stands in a major supply zone, and the next few weeks will be very critical.
Tech & Energy Stocks Boost S&P 500 In July
The strong rebound in the S&P 500 index and the Nasdaq 100 index can be attributed to the strong earnings report of the tech sector and the rising oil prices. Tech stocks have made massive gains in the first two quarters of the year. The bullish market sentiment only seems to be getting stronger with each passing day.
The Q2 earnings reports of many big companies are lined up for this week. If the financial results of the major constituents of the S&P 500 index remain satisfactory, the index may continue to surge in the coming weeks. However, there is a key level on the chart which it needs to flip into support to aim more upside.
S&P 500 Index Retests Weekly Resistance
In my previous INDEXSP: .INX analysis, I gave the target of 4,500 points for SPX. This target was perfectly met in July 2023. The following chart shows that there is strong resistance in the 4,550-4,650 region. The index must reclaim this region in order to aim for more upside.
Even though S&P 500 index forecast is looking very bullish right now, a rejection from the above-mentioned resistance could change everything. Therefore, the next few weeks would be very critical for the US stock market. The July CPI numbers may affect the index, which is set to be released next week.
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