S&P 500 Closes at Record Highs as Rotations Drive Toward 7,400 Targets

The S&P 500 closed at fresh record highs on May 3, with technicals signaling no rest as sector rotations and strong Q1 earnings (EPS +27.8%) propel it toward measured targets near 7,425, supported at 7,146-7,107. From March 30-31 lows of 6,320-6,367, the index surged over 11% in 12 days—the fastest 14-day RSI flip from oversold to overbought in over four decades—after a 44% VIX plunge to 17.48 on ceasefire hopes, breaking key levels at 6,620, 7,000 en route to Elliott Wave five targets around 7,200. Bullish momentum persists despite narrow breadth, oil above $111/barrel, VIX at 18-20, and Fed hawkishness.