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S&P 500 TESTS THE CEILING AS BULLS STEP ON THE GAS

Wall Street futures are moving higher on Wednesday, lifted by hopes of a potential U.S.-Iran peace deal, sliding oil prices, and continued enthusiasm around artificial intelligence.

E-mini S&P 500 futures EScv1 are up around 0.7%, pointing to a strong start for the cash S&P 500 .SPX at the open.

The index is already showing strong momentum. On Tuesday, the S&P 500 ended at 7,259.22, marking its 13th record close of the year and putting it on pace for a sixth straight weekly gain. The last time it pulled off six consecutive weekly advances was in October 2024, and before that, it managed an even longer nine-week winning streak back in December 2023.

With the way futures are shaping up, the S&P 500 looks set to push past its May 1 intraday high of 7,272.52 and take a run at resistance near 7,300. That level lines up with a key weekly Gann Line — a technical marker traders use to gauge support, resistance, trend strength, and potential turning points based on price and time.

This particular Gann Line has been especially important, capping the index’s weekly gains since late 2024. Whether the S&P 500 can decisively break through it on a weekly closing basis will be closely watched.

If a longer-term 18-year cycle continues to play out, the next notable level comes in at 7,334.69, which represents 11 times the 2009 market low. Historically, the S&P 500 has sometimes struggled when it reaches major multiples of that low, so it’s another area to keep an eye on.

Should the index power through these resistance zones, the door would open to a more aggressive, potentially blow-off rally. In that scenario, attention would likely shift toward 7,500, then a higher weekly Gann Line near 7,750, and eventually the 8,000 area, which coincides with both another weekly Gann Line and 12 times the 2009 market low.

On the flip side, a turn lower that breaks below the May 4 low of 7,174.12 would raise the risk that more meaningful support near 7,000 could come under pressure.

(Terence Gabriel)

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