S&P 500 Remains in Uptrend, But Rate Fears Cloud the OutlookS&P 500SPCFD:SPXNaranjCapitalThe S&P 500 remained close to its record highs last week, closing at 7,718.60, just below the 7,800 level. While the broader trend remains positive, the market is entering an important week as investors turn their attention back to inflation and the Federal Reserve's next move. The stronger-than-expected jobs report has increased concerns that the Fed may keep rates higher for longer, putting some pressure on equities, particularly high-valuation technology stocks. The market is still in an uptrend, but momentum is being tested From a technical perspective, the overall trend remains positive and the index continues to trade within a well-defined rising structure. However, the S&P 500 has struggled to make a decisive move above the 7,800 area. This makes the current zone important. A breakout could open the door for another leg higher, while another rejection could lead to a short-term pullback. Key levels to watch On the upside: 🔴 7,800 → Major resistance This remains the key level for the market. A sustained breakout above 7,800 could signal renewed bullish momentum and potentially take the index into uncharted territory. On the downside: 🔵 7,550–7,600 → Immediate support This is the first important support zone to watch on any pullback. Holding this area would keep the short-term structure positive. 🔵 7,250–7,300 → Major support A deeper correction toward this zone would indicate a more meaningful deterioration in momentum. Inflation data takes centre stage The key focus this week will be the PPI and CPI inflation reports. After the stronger-than-expected jobs data pushed rate-hike expectations higher, investors will be watching closely to see whether inflation is also proving sticky. A softer inflation reading could ease pressure on Treasury yields and support another attempt at 7,800. On the other hand, hotter-than-expected inflation could push yields higher and put further pressure on equities. What should traders watch now? The S&P 500 is still trading close to its highs, so there is no clear technical breakdown yet. But with the index sitting just below major resistance and an important inflation week ahead, this may not be the ideal time to chase the rally. Instead, traders should watch how the index reacts around the key levels. A breakout above 7,800 could strengthen the bullish case. A pullback toward 7,550–7,600 could provide a better risk-reward setup. For now, the broader trend remains positive, but the next directional move will likely depend on whether inflation data supports or challenges the market's expectations for interest rates.