AI Stocks Drive Rally as S&P 500 Index Tests 7,450 Resistance

S&P 500 Heat Map Shows AI Infrastructure Carrying the Tape

AI infrastructure is doing the heavy lifting in today’s session, while consumer facing names are mixed to say the least. MU is above 5%, QCOM is up 5%, WDC increased 7% and STX gained over 5%. These stocks are riding the memory chip squeeze and AI and data centre demand story. Moreover, Vrt (+7.60%), GEV (+3.76%) and ETN (+3.27%) fit the power, cooling and grid hardware side of the data centre trade.

On the red side of the heat map, BKNG is down about 4%. This could be attributed to travel caution after Booking cut its annual revenue growth forecast due to Middle East disruption. SBUX is also down close to 4%. This appears to be profit taking by the traders as the company posted a stronger quarter. Traders are also taking some gains off of TJX, which is down over 3%, as their earnings are due in a week’s time.Overall the S&P 500 is up over 0.20% today.

Semiconductors, Storage and Data Center Power Stocks Lead

S&P 500 Sector Heat Map

Source: TradingView

Existing Home Sales Miss Forecast as Housing Stays Sluggish

Today’s data release was US existing home sales which came in at 4.02M, just under the 4.05M forecast. This isn’t a disaster. But the data shows that sales have been hovering around the low 4 million range for months. This could be indicative of a slowing US economy and may be just a little impetus, just a little, for the Fed to start reducing rates.

US Existing Home Sales came in at 4.02M, Slightly Below Forecast

Bar chart of US Existing Home Sales

Source: TradingView

S&P 500 Daily Rally Extends as RSI Runs Hot

The S&P 500 Index is exhibiting a robust uptrend off of the March 2026 lows. Indeed, the RSI is in overbought territory but that doesn’t mean that there will be a sudden drop in the index. It’s just an expression of the uptrend. We think that there will be some consolidation though as the Index approaches the 7,450 resistance level. If the S&P 500 does pull back, it may retest support around the 21-EMA.

Daily S&P 500 Chart Shows RSI in Overbought Territory With Strong Bullish Trend

S&P 500 Index Daily Candlestick Chart

Source: TradingView

Weekly S&P 500 Index Breakout Presses into 7,450 Resistance

The S&P 500 is approaching 7,450 resistance when looking at the Weekly chart. The Index is above both the short and long term Supertends which are providing support around the 7,100 and 6,625 levels respectively. It’s a clear bullish structure with weeks of positive action post the March lows.

Weekly S&P 500 Chart Shows Demand Extending the Rebound

S&P 500 Index Weekly Candlestick Chart

Source: TradingView

S&P 500 Renko Breakout Pushes Above 7,400

After a brief pullback last Thursday and Friday and S&P 500 Index is now pushing higher, looking to test the 7,400 resistance level. It’s a beautiful uptrend higher on the Renko. The Supertrend is flipped green, the medium term 50-SMA is trending higher and the 500-SMA is steady as she goes below the price action. The RSI is a little under overbought levels while the Z-Score SMA is looking a bit extended as well. Expectations will be for the S&P 500 to meet the 7,450 target and give itself a bit of a breather thereafter.

12-Brick Renko Shows S&P 500 Index Extending Its Bullish Breakout

S&P 500 Index 12-Brick Renko Chart

Source: TradingView

The Verdict

Current Trend Direction: Bullish

Bias: Positive

Support Levels: 7,100, 6,625

Resistance Levels: 7,450, 8,150

Medium Term Path: The S&P 500 Index remains in a strong uptrend but it is heading towards 7,450 resistance a bit extended. Expectations are for the Index to hit 7,450 and pull back before continuing on its upmove. Once it surpasses 7,450 the next level to watch is 8,150.