The S&P 500 (SPX) is trading near 7,421 after SpaceX completed the largest initial public offering in history. The index is correcting from its record high of 7,620.90 as the $75 billion first issue absorbs liquidity.
SpaceX (SPCX) sold 555.56 million shares at $135 per share, valuing the company at about $1.77 trillion. Traders are now watching whether the index is able to defend the support just below 7,000.
The largest initial public offering in history tests the liquidity of the stock market
SpaceX began trading on the Nasdaq under the ticker SPCX on Friday, June 12. The $75 billion increase doubled Saudi Aramco’s value of $29.4 billion. register From 2019. Its value is $1.77 trillion evaluation It places it among the 10 largest listed companies in the world.
Demand has reached extreme levels, with order books more than closed It was oversubscribed three times. Retail investors received nearly 30% of the allocation, nearly three times the usual norm for mega-cap listings.
Furthermore, BNP Paribas estimates that total retail and passive inflows into SPCX could reach $50 billion.
Much of this money may be rotated out of crowded technology positions. The pressure has already contributed to a losing week for the index.
Meanwhile, the S&P Dow Jones Indices retained eligibility rules Unchanged in early June. As a result, SPCX cannot join the S&P 500 for at least 12 months.
In contrast, Nasdaq-100 and Russell trackers may have to buy $22 billion to $27 billion worth of shares. These flows can also impact Bitcoin (BTC), which often reacts to shifts in stock liquidity.
SPX weekly chart maintains long-term uptrend consolidation
On the weekly time frame, the indicator continues to record higher highs and higher lows. The highs advanced from 4,818 to 6,147.43, then to the current level of 7,620.90. Meanwhile, the lows rose from 3,492 to 4,103.78, then to 4,835.04, and finally to 6,316.91.
Three long-term support areas stand out on the chart. The historic district is located near 4,835, while the second district extends from 6,250 to 6,300. However, the most important level now is just below the 7000 level.
The price is also moving within an ascending channel that has led the trend since the April 2025 low. The recent rejection at 7620.90 indicates a retest of the 7000 level and the lower channel range. After that, the structure may support a renewed uptrend in the fourth quarter of 2026.
The weekly Relative Strength Index (RSI) is holding just below 70, indicating upward momentum without excessive overbought.
SPX price forecast puts 7,000 point support in focus
The daily chart shows the correction from the record high in detail. The indicator rebounded from the 55-day Exponential Moving Average (EMA), which served as support. However, the 21-day EMA is now acting as resistance to the recovery.
If selling resumes, the 0.382 Fibonacci retracement at 7122.20 should act as first support. The next area is at the 0.5 Fibonacci retracement level near 6968, coinciding with weekly support. A retest of that area would represent an 8.6% retracement from the all-time high.
The Bollinger Band Width Percentile (BBWP) indicator is already printing near extreme red readings. Similar highs accompanied the April low at 6,316.86, so volatility may be near the peak.
Therefore, holding 7,000 could see a Q4 2026 rally above 7,620.90, roughly 3% above current levels. In contrast, a daily close below 6,968 would invalidate the setup and expose the 0.618 retracement level at 6,814.66.
Conditions for confinement of musk Adding another variable for the coming months. SpaceX’s largest IPO in history provides a liquidity catalyst that may determine which level will break through first.
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