The post Is 5,000 just a temporary pause for the S&P 500? appeared on BitcoinEthereumNews.com.

On Friday, stock prices took a downward turn following the release of the Producer Price Index (PPI), which came out higher than expected at +0.3% month-over-month. The S&P 500 index lost 0.48%, pulling back from its record high of 5,048.39 reached on February 12. Last week, the market was rebounding from Tuesday’s local low of 4,920.31, and it was on its way to re-test the all-time high; however, Friday’s data halted that rally. Recently, the stock market continued to rally, fueled by advances in a handful of tech sector stocks, but as I wrote on February 7, “We may have to deal with a correction or consolidation of several weeks of advances. With the season of quarterly earnings announcements coming to an end and a series of important economic data, profit taking may follow.” This morning, futures contracts are indicating a 0.4% lower opening for the trading session, further extending Friday’s downward correction of the S&P 500 index. The market may see some more uncertainty and a consolidation along the 5,000 level. Investors are now eagerly awaiting tomorrow’s quarterly earnings release from NVDA, preceded by the FOMC Meeting Minutes announcement. Last week, investor sentiment has worsened a bit; Wednesday’s AAII Investor Sentiment Survey showed that 42.2% of individual investors are bullish, while 26.8% of them are bearish. The AAII sentiment is a contrary indicator in the sense that highly bullish readings may suggest excessive complacency and a lack of fear in the market. Conversely, bearish readings are favorable for market upturns. Last Tuesday, I mentioned, “The market may return to a month-long upward trend line, currently around 4,950”, and indeed, the S&P 500 did just that, briefly dipping below that line. The previous highs and lows from January acted as support levels around 4,900, and on Thursday, the index came…

---

Filed under: News - @ February 20, 2024 8:12 pm