S&P 500 Bulls Breaking 7,175 as GDP, Core PCE and AI Momentum Support A May Rally

12-brick Renko chart of the SPX 500 Index

Source: TradingView

The Verdict

Current Trend Direction: Bullish

Bias: Positive

Support Levels: 6,310, 6,920

Resistance Levels: 7,450, 8,150

Medium Term Path: To me this move is looking like a springboard for the S&P 500 The 7,200 level is acting as the immediate breakout zone. A sustained move above there can take the Index towards 7,450. This setup is being supported by the macro backdrop which is firm and not overheating, and continued AI-led leadership for the most part. The path favours a May continuation rally. However, a break below 6,920 would negate this view. Volatility as seen by the VIX is sub 20 so it is unlikely that that level would be broken in the short to medium term.