S&P500 rebound reflects growing confidence support at 6827US 500 (per 1.0)TRADENATION:US500TradeNationThe S&P 500 saw a strong recovery, rising +1.02% on the session and erasing its initial losses to close above its pre-strike level from late February. The move reflects a clear shift in sentiment, as markets responded positively to the prospect of renewed US–Iran talks and a potential extension of the ceasefire. Geopolitical developments were central to the rally. While tensions remain elevated, the fact that negotiations are ongoing has reassured investors that the conflict may prove temporary rather than escalating further. This was reinforced by moves in oil markets, where Brent Crude pulled back below $100/bbl and futures continue to signal expectations of lower prices over time, pointing to limited long-term disruption. Risk sentiment improved broadly, supporting equities across sectors. Cyclical areas led the advance, with technology and financials outperforming, highlighting renewed confidence in growth-sensitive parts of the market. The rally also appears technically significant, with the index now up +8.55% from its late-March lows—marking one of the strongest short-term rebounds in recent years. However, not all signals were uniformly positive. Some earnings-related weakness emerged, particularly in financials, where softer-than-expected results in trading revenues weighed on select names. Investors are now turning their focus to upcoming bank earnings, which will be critical in assessing the resilience of the US economy and credit conditions. Conclusion: The S&P 500’s rebound reflects growing confidence that geopolitical risks may remain contained, allowing markets to refocus on fundamentals. While volatility could persist given ongoing tensions, the combination of easing oil prices and expectations of a temporary conflict is providing near-term support. Sustaining the rally will likely depend on confirmation from earnings and continued progress on the diplomatic front. Key Support and Resistance Levels Resistance Level 1: 6935 Resistance Level 2: 6971 Resistance Level 3: 7008 Support Level 1: 6827 Support Level 2: 6799 Support Level 3: 6760 This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.