Technical indicators suggest the benchmark S&P 500 is likely to extend its record-breaking rally, with a medium-term target of 6,750.

The outlook comes as the index undergoes a short-term correction. By press time, the S&P 500 stood at 6,427, down 0.36% on the day but still up 9.5% year to date.

Despite the pullback, TradingShot analysis shows the market remains firmly within a three-month upward channel. 

In a TradingView post on August 19, the index is currently holding above its four-hour 50-period moving average, which has consistently acted as support. A stronger safety net sits at the 200-period moving average, which marked the last higher low on August 1.

TradingShot noted that the bullish leg starting from that August rebound remains intact. A similar move earlier in the summer delivered an 8.8% gain, and a repeat could lift the index to 6,750 in the medium term.

Can the S&P 500 sustain rally? 

This comes at a time when investor debate continues over whether U.S. stocks can sustain their record-setting run. Optimism around earnings and economic resilience has fueled gains, while inflation, interest rates, and Federal Reserve policy remain key risks. 

Analysts say holding above the 50- and 200-day moving averages would keep the index on its uptrend, while a break below those levels could trigger a deeper correction.

The technical setup is reinforced by strong fundamentals, with Wall Street turning increasingly bullish. As reported by Finbold, Morgan Stanley projected 7,200 for the S&P 500 by mid-2026, while Oppenheimer raised its year-end target to 7,100 from 5,950. Other upgrades include BMO at 6,700, Goldman Sachs at 6,600, and Bank of America at 6,300.

This bullish shift follows April’s tariff-driven selloff, which briefly raised recession fears. However, risks linger, including heavy insider selling and signs of global deflation that could weigh on momentum.

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