The S&P 500 opened trading on June 8 above the previous close of $7,383. So far, and as of writing, the stock has surged to the range of $7,415.07 - $7,466.81 within the day.
However, the S&P 500 has entered a critical phase after pulling back from record highs near 7,640. Following a sharp sell-off that briefly pushed the index toward the 7,360 support zone before last week's closing bell, buyers have returned, helping the benchmark recover to around 7,466 during Monday's session.
The question now is simple: Is this merely a temporary bounce, or the beginning of the next leg higher toward Goldman Sachs' year-end target of 8,000?
From a technical perspective, the recent correction appears healthy rather than alarming.
The index fell, creating one of the sharpest pullbacks of the year. However, the decline stopped at a zone that has repeatedly attracted buyers.
The 7,360 level previously acted as resistance before becoming support during May's rally. It also aligns with the breakout area that launched the move to record highs.
When markets revisit the origin of a major breakout, institutional investors often step in to defend the trend. That appears to be happening again.
As long as the S&P 500 remains above 7,360, the broader bullish structure remains intact.
Source: TradingView
The Next Resistance Level: 7,520
The first hurdle for bulls is 7,520.
This level served as an important consolidation zone before the recent breakdown. Because price sliced through it during the sell-off, it has now transformed into resistance.
A successful move above 7,520 would likely signal that the correction has run its course.
If that happens, traders could begin targeting the previous all-time high near 7,640.
Breaking above that level would put the psychological 7,700 mark into focus and potentially open the path toward Goldman Sachs' longer-term target.
Earnings Growth Remains the Biggest Bullish Driver
Fundamentally, the case for higher stock prices remains strong.
Goldman Sachs recently increased its year-end S&P 500 target from 7,600 to 8,000. The firm's strategists expect earnings per share to reach $340 in 2026, representing annual growth of 24%.
Source: Goldman Sachs
Even more impressive, first-quarter earnings growth came in at 18% year-over-year, one of the strongest performances outside the post-pandemic recovery period.
Artificial intelligence remains a major catalyst.
Companies involved in AI infrastructure, semiconductors, cloud computing, and data centers continue to drive a significant portion of corporate profit growth. Despite the recent sell-off in chip stocks, long-term demand for AI-related spending remains robust.
Risks Investors Should Watch
The bullish outlook is not without challenges.
The May jobs report came in much stronger than expected, reigniting concerns that the Federal Reserve may need to keep interest rates elevated or even consider another rate hike later this year. The U.S. economy added 172,000 jobs in May, while unemployment held steady at 4.3%.
Higher Treasury yields tend to pressure stock valuations, particularly in technology and growth sectors.
Geopolitical risks also remain elevated. While Iran has signaled an end to recent military operations against Israel, the ceasefire remains fragile, and disruptions to energy markets could create renewed inflation pressures.
These factors could produce additional volatility over the coming months.
S&P 500 Price Prediction
The most likely near-term scenario is a rebound from 7,360 toward 7,520, followed by a retest of the record high near 7,640.
If earnings continue to outperform expectations and inflation remains contained, the index could extend toward 7,800-8,000 by year-end.
Bullish scenario: Break above 7,520 leads to a move toward 7,640, followed by an advance to 7,800 and potentially 8,000.
Neutral scenario: The index consolidates between 7,360 and 7,520 as investors assess earnings, inflation, and Federal Reserve policy.
Bearish scenario: A decisive break below 7,360 could trigger a deeper correction toward the 7,200 region.
For now, the technical and fundamental evidence favors the bulls. The recent pullback looks more like a reset within an ongoing uptrend than the start of a major bear market, making the 7,360 support zone one of the most important levels to watch in the weeks ahead.
