S&P 500 Tops 7,620 Resistance, Eyes Breakout at 7,700

3 articles · Updated · CNBC · Aug 4

Around 7,700 on Tuesday, the S&P 500 moved above its prior 7,620 June peak, but technicians said the rally needs a couple of decisive closes above that level to confirm a breakout.
Amazon and Microsoft earnings helped drive the advance, while investors also treated last month's Situational Awareness hedge-fund unwind as a clearing event for crowded AI trades.
A confirmed breakout could support August gains despite the month's weak seasonal pattern, with analysts favoring technology and seeing room for semiconductors to recover after SOXX fell more than 20% in July.
Broader participation is also improving: the Magnificent Seven ETF is up nearly 4% this month, but some strategists prefer the equal-weight S&P 500, financials and consumer discretionary as rotation widens.
Failure to hold 7,620 would likely revive selling pressure, while a sustained move above it could leave the index on track to finish 2026 higher even with midterm-election volatility ahead.