S&P 500 extends the rise above 4,300 points

• The S&P 500 extends its rally to multi-month highs above 4,300 during the European session on Friday.
• The improvement in sentiment supports the extension of the rally of the S&P 500.
• Market participants are already focusing on the US CPI and this week’s Fed rate decision.

The index S&P 500 extends last week’s move higher and aims to open gapping higher above 4,300 points during the European session on Monday.

Improved sentiment led the S&P 500 to a high of 4,319 last Friday, in levels not reached since August 16, 2022. Finally, the index fell slightly and closed with a daily gain of 1% at 4,299 points.

At time of writing, the S&P 500 is trading around 4,312 points, up 0.30% on the day, and points to an extension of the recent rally.

S&P 500: Focus returns to US data

With the law passing to suspend the US debt ceiling limit, investors’ attention is once again focused on US data.

Recent data and comments from US Federal Reserve (Fed) officials could prompt the central bank to keep rates unchanged in June, which would support the S&P 500 rally.

At the time of writing, the probability that rates will remain unchanged at the next meeting of the Federal Open Market Committee (FOMC) on June 13-14 is around 76%.

No economic data from the US will be released today as market participants already awaiting the release of US Consumer Price Index (CPI) data for May on Tuesday and the Federal Reserve’s interest rate decision on Wednesday.

S&P 500 Technical Analysis

Technically, the S&P 500 is extending the move higher to the highest levels since August 2022 after the improvement in market sentiment after the approval of the agreement to suspend the limit of the US debt ceiling until January 2025.

At the time of writing, the S&P 500 is trading at 4,312close to the annual maximums of 4,319 achieved last Friday. If the rise continues above the mentioned level, the index will test the level of 4,323August 2022 high. Above this region, the S&P 500 could target the 4,380at levels not seen since April of last year

On the other hand, initial support could be seen in the 4,305 points (daily low), followed by the 4,295-4,299 region (previous week’s high area, Friday’s close), 4,280 (minimum from last Friday), 4,258 (minimum from last week).

S&P 500 daily chart