The S&P 500’s technical setup appears to be positioning the index for a potential record high of around 7,400 in the coming months.
According to online analyst TradingShot, the benchmark index could climb nearly 25% from its current level of 5,946.
In a June 3 post on TradingView, the analysts highlighted that this bullish outlook stems from the formation of an inverse head-and-shoulders pattern, a classic technical signal of a potential uptrend.
This pattern features a left shoulder in March, a deep head in April, and a right shoulder in May. A breakout above the neckline occurred in late May, projecting a measured move of roughly 24.5% from the breakout point. This target aligns with a potential peak around August 28–30.
Adding to the bullish case, the index has recently reclaimed its 50-day and 200-day moving averages (MA), widely viewed as signs of renewed institutional buying. The projection’s upward arc further suggests an accelerating rally throughout the summer.
S&P 500 recovers from tariff dip
This optimistic outlook follows the index’s sharp rebound from the April 9 dip linked to trade tariff concerns. Since that decline, the S&P 500 has surged by 20%.
Despite ongoing trade tensions between the U.S. and China, June has also started strong for the index. These tensions escalated after China accused the U.S. of breaching the May trade agreement, claiming that new American measures “seriously undermine” the deal.
This came in response to President Donald Trump’s statement that China had “totally violated” the agreement aimed at reducing tariffs on both sides.
Beyond technical factors, parts of Wall Street remain upbeat on the S&P 500’s trajectory for the rest of 2025. Goldman Sachs, for instance, forecasts the index reaching 6,500 by year-end, driven by an expected 11% rise in earnings and a 5% increase in sales.
Bank of America is slightly more optimistic, projecting a target of 6,666 based on 13% earnings growth and favorable U.S. economic policies. Leading the bullish forecasts, Oppenheimer sees the index climbing to 7,100, fueled by the accelerating adoption of artificial intelligence.
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