The S&P 500 index maintained its upward trend and remained bullish around the 5,070.55 level, hitting an intra-day high of 5,076.12.

The upward trend can be attributed to multiple factors, including easing geopolitical tensions and hawkish sentiments from Federal Reserve officials.

Bullish Performance Amidst Easing Geopolitical Tensions

On the geopolitical front, the easing of conflicts between Israel and Iran has reduced worries among investors.

This, in turn, allows investor confidence to grow, creating a more favorable investment environment and contributing to the gains in the S&P 500 index. Therefore, the decrease in geopolitical tensions is beneficial for the S&P 500 index.

As uncertainties diminish, investor confidence rises, prompting increased investment in equities and pushing stock prices higher.

Hawkish Comments from Federal Reserve Officials

Another factor that has been boosting the S&P 500’s upward momentum is the hawkish stance adopted by Federal Reserve officials. It should be noted that the Federal Reserve has shown willingness to maintain high interest rates to address inflationary pressures.

Therefore, the hawkish comments from Federal Reserve officials impact the S&P 500 index in multiple ways. While the prospect of higher interest rates can initially cause uncertainty among investors, it also underscores the Fed’s commitment to combating inflation and maintaining economic stability.

This reassurance fosters confidence in the market, bolstering the upward trajectory of the S&P 500.On the data front, the previously released US economic data showed a mixed picture for the US economy.

The S&P Global Composite PMI, reflecting the health of the private sector, dipped to 50.9 in April, signaling slower growth. Both the Manufacturing PMI and Services PMI also weakened, with Manufacturing even contracting. This indicates a slowdown in US business activity.

Concurrently, the US dollar is gaining strength as investors anticipate prolonged high interest rates by the Federal Reserve to combat inflation concerns.

The mixed economic indicators, including a slowdown in business activity and weakening PMI numbers, exert pressure on the S&P 500 index and limiting the upside momentum of S&P 500 index.

Therefore, investors see these signs as possible challenges for companies’ earnings growth, which could lead to more ups and downs in the market and possibly lower stock prices.

Additionally, the strengthening US dollar could impact multinational companies’ profits by reducing the value of overseas earnings when converted back into dollars, further influencing S&P 500 performance.

S&P500 (SPX) Price Forecast: Technical Outlook

Today, the S&P 500 exhibited a modest gain, advancing 1.20% to close at $5,070.56. The index is currently poised just above its pivotal support level at $5,038.43, suggesting a stable footing for further bullish activity.

Looking ahead, investors should monitor the immediate resistance at $5,107.34, with further upside potential targets at $5,173.51 and $5,263.93. Should the index falter, there is substantial support beginning at $4,953.05, with additional safety nets at $4,883.16 and $4,802.48.

From a technical perspective, the Relative Strength Index (RSI) sits at 47, indicating a neutral momentum which neither favors the bears nor the bulls decisively.

The 50-day Exponential Moving Average (EMA), currently at $5,110.54, slightly above today’s closing price, may act as a minor resistance in upcoming sessions.

In conclusion, the outlook for the S&P 500 remains bullish above the pivot point of $5,038.43. However, a breach below this level could trigger a sharp selling trend, shifting the market sentiment towards bearish.