FUNDAMENTALOVERVIEWThe S&P 500 has been printing new record highs every week since thestart of April despite the prolonged US-Iran stalemate and the Strait of Hormuzclosure. The market can support persistently elevated oil prices as long as theFed maintains a neutral stance as that keeps easing financial conditions. The problem is that the Fed is about to abandon the easing bias at theupcoming FOMC meeting and given the persistently elevated inflation andresilient US data, the Fed might even deliver a hawkish surprise which wouldtrigger a bigger and more aggressive pullback. That’s because elevated oilprices coupled with Fed tightening risk would weigh on growth expectations.If we do get an official resolution, the reopening of the Strait could givethe stock market another boost in the short-term as oil prices will likely falland rate cut bets will increase. With the reopening of the Strait and lower oilprices though, the increase in economic activity could keep inflation higherfor longer and eventually require rate hikes anyway, so the data will takecentre stage. S&P 500TECHNICAL ANALYSIS – DAILY TIMEFRAMEOnthe daily chart, we can see the S&P 500 pulled back into the 7,530 support zone. This is wherethe dip-buyers stepped in with a defined risk below the support to position fora rally into new record highs. The sellers will need the price to break belowthe support to extend the pullback into the 7,360 support next.S&P 500TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOnthe 4 hour chart, we have anupward trendline defining the bullish momentum and adding confluence to thesupport zone. This should technically make the support stronger. The buyerswill likely continue to step in around these levels with a defined risk belowthe trendline to keep pushing into new highs. The sellers, on the other hand,will need the price to break lower to pile in for a drop into the 7,360 levelnext.S&P 500 TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, there’snot much we can add as the buyers will likely continue to pile in here totarget new highs, while the sellers will wait for a break to extend thepullback into new lows. The red lines define the average daily range for today. UPCOMING CATALYSTSToday, we get the latestUS Jobless Claims figures. Tomorrow, we conclude the week with the US NFPreport. This article was written by Giuseppe Dellamotta at investinglive.com.