S&P 500 index price eyes breakout ahead of earnings barrage, but key resistance looms
S&P 500 tests descending trendline as earnings from Apple, Amazon, and Microsoft take center stage
U.S. stock futures edged lower on Monday as investors brace for a packed earnings calendar, with over 180 S&P 500 constituents set to report this week, including tech behemoths Apple, Amazon, Meta Platforms, and Microsoft. The Nasdaq, S&P 500, and Dow all posted strong weekly gains last week, fueled by signs of softening U.S.-China trade rhetoric and a rebound in tech shares.
However, market participants remain cautious amid lingering trade uncertainties and subdued forward guidance from several early reporters.
First-quarter earnings have been broadly positive, but outlooks for Q2 and the full year are being revised lower amid escalating global trade tensions. While U.S. President Donald Trump has dialed back his rhetoric toward Beijing and China has granted tariff exemptions for some American goods, questions remain about the actual status of formal negotiations. Meanwhile, the Federal Reserve’s stance remains under scrutiny as investors weigh the likelihood of rate cuts later in the year.
S&P 500 price analysis (December 2024 - April 2025) Source: TradingView.
S&P 500 technical setup signals inflection point
From a technical perspective, the S&P 500 index is confronting a major resistance zone between 5,565 and 5,570, coinciding with the descending trendline from March highs and the upper Bollinger Band on the 4-hour and daily charts. The index has staged a steady recovery from its April lows near 5,000, forming higher lows and reclaiming all key short-term EMAs. RSI remains firm around 60.11, while MACD momentum is accelerating in bullish territory.
However, with price pressing against upper resistance and volatility indicators expanding, the market is at a critical juncture. A breakout above 5,570 could pave the way toward 5,610 and ultimately the 5,700–5,800 supply zone. On the downside, failure to clear current levels may lead to a pullback toward 5,411 or deeper to 5,300.
Outlook and key catalysts
The immediate focus will be on earnings reports from the tech sector, which could determine whether the S&P 500 can decisively break its bearish trendline and reclaim bullish momentum. Until then, the index is likely to remain range-bound as investors await clarity on corporate outlooks and geopolitical developments.
As noted in prior sessions, the 5,500–5,570 region remains a pivotal resistance. A clean breakout is essential to shift sentiment toward a sustained bullish reversal.
