Here is a quick rundown of what the condition of the stock market looks like.
The S&P 500 continues to be in a strong uptrend that began back in early April after an approximate 10% correction. Currently the S&P 500 is holding well above both its 50-day and 200-day moving averages — one of the clearest signs that the primary trend remains bullish. The index continues to make record highs, with technology and AI-related stocks continuing to lead the advance.
Technical Perspective
From a technical perspective, here is the support for these observations (See chart below):
• Price remains above the 50-day MA and 200-day MA, confirming bullish market structure.
• Momentum indicators like the RSI are elevated to around 71–75, which places the market in overbought territory. This does not necessarily signal a top, but it does increase the probability of consolidation or a short-term pullback in the near future.
• Market strength has improved significantly since the March correction, with the index recovering from its spring selloff and returning to record levels.
• Near-term support appears in the 7,450–7,520 zone, while resistance is essentially being discovered at new highs.
Summary
The current trend remains bullish and the momentum is very strong but likely overextended at this point. The biggest risk at this point seems to be the likelihood of a shallow pullback and sideways consolidation for a short period of time.
Unless the S&P 500 breaks back below its rising 50-day moving average, the technical evidence continues to favor buying dips rather than anticipating a major trend reversal. The bigger risk right now is not a bear market signal—it’s chasing an already extended rally.
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This post is for informational purposes only. It is not intended as investment advice as each person’s financial situation is different. I strongly recommend working with a financial advisor who can deliver current information to you quickly and offer help with sorting through the various investing options.
Bret Wilson is a Financial Advisor with Wilson Investment Services, based in Rockwall, Texas.