AI Rally and ADP Jobs Beat Push S&P 500 Index Toward 7,450 Target

AMD and AI Stocks Lead Heat Map as S&P 500 Hits Fresh Highs

Risk is banging. AMD is the star of the day, up 17%, after strong earnings and an upbeat revenue forecast tied to data-centre chip demand, which is why the AI story is alive and well. Disney is coming in with the action too, up 6.67%, after beating quarterly estimates. Uber jumped over 7% after a strong Q2 bookings outlook. Breadth is looking nice as well.

Lam Research up 7%, GE up 6%, so it’s not just AI and AI plus.

But not everyone in the S&P 500 Index is up. Arista Networks is down a whopping 16%. But it seems like a buy the rumor sell the news type of trade. Nonetheless these moves are extremely bullish.

Sell in May? No way.

Stay with your friend the Trend.

S&P 500 Heat Map Shows AMD, Disney, Uber and Select AI-Linked Names Rallying

S&P 500 Index Market Heat Map

Source: TradingView

ADP Jobs Beat Supports S&P 500 Soft-Landing Trade

US private payrolls beat expectations, with the figure rising 109K versus the 99K forecast and even above the 61K reading prior. This macro data point is bullish for the S&P 500 Index as the soft landing narrative remains alive and well. The US labor market is creating jobs, demand isn’t falling apart and recession fears have pulled back a bit.

US Private Payrolls rose 109K in May, Beating Forecasts

Bar Chart Showing US ADP Employment Change

Source: TradingView

S&P 500 Renko Breakout Keeps Bulls in Control

We are seeing the S&P 500 Index push higher making new all time highs. All eyes are on the 7,450 level in the medium term. But in the short term things are looking a bit overextended. I am seeing some bearish divergence on the Z-Score SMA as it has turned lower while the SPX bricks rally. A crossunder on the RSI’s overbought 70 level will confirm the short term bearish divergence. There’s plenty of support around 7,150 so it may pull back there to regain some momentum. But the trend overall is up.

12-Brick Renko Shows SPX Making New All Time Highs

S&P 500 12-Brick Renko

Source: TradingView

The Verdict

Current Trend Direction: Bullish

Bias: Positive

Support Levels: 6,310, 7,000

Resistance Levels: 7,450, 8,150

Medium Term Path: All roads lead to 7,450. This would be backed by the AI-stocks, strong earnings momentum from the broader market and a labor market that is pushing through all the technological shifts. But things are getting hot for the moment. While the Renko structure is bullish, I am seeing some bearish divergence. So we may get a couple flat days going forward. Or even a couple down days. Things may need to settle first before the 7,450 attempt. So the dips outghta be buying.