Technically Speaking – June

June 3, 2026

Long Term Resistance SP500: 7,607
Long Term Support SP500: 6782 then 6,619

During May, the markets reached multiple new all-time highs. Investors are continuing to brush off oil volatility amid the Iran war. We did see markets turn negative in response to rising interest rates in May. Investors become more nervous about rising interest rates because the thought is the Fed will not be able to cut rates as soon as they have been saying. Warsh was sworn in as the new Fed chair during May, and he is expected to be more dovish in his approach to interest rates. But, even with that, he cannot just come in and lower rates immediately if the economy cannot handle it. This would risk increasing inflation. We will continue to monitor the CPI and PPI numbers, which both were higher than expected last month. If these decrease soon, then we could see the tune change on when the Fed could will lower rates.
Even with all this news on inflation numbers, the S&P ended the month by hitting a new all-time high, giving a new resistance number of 7,607. If rising interest rates persist and the S&P drops in response, then we will look to see how the markets react if the S&P hits its first long term support number of 6,782. If it falls through that, then there is a gap to be filled bringing the S&P down to 6,619. The market sentiment overall is still bullish because of the forward thinking nature of the markets. The AI revolution and astronomical IPOs coming this year have investors excited and ready to invest. SpaceX is going to go public this month, in the largest IPO ever, and investors are ready to pour money into SpaceX and similar companies.
The Summer tends to be a quieter time of the year for the markets. We see some movement towards the end of June because that is the end of the 2nd quarter, but overall the summer tends to be steady. I believe there is still room for this market to run higher this year. Right now, I will be mainly focused on interest rates and overvaluation because I think these will be the main catalysts for the market turning down as we go into the second half of the year. If you feel nervous of companies already being overvalued, then it might not be a bad time to raise some cash and have it on the sideline ready to deploy if we see a downturn. I do not suggest getting out of companies 100% if you believe in them. Investing is a long game.