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Friday’s trading session wasn’t a game-changer as the S&P 500 index remained within a short-term consolidation, gaining 0.12%. Last Thursday, it reached a new record high of 5,325.49 following its Wednesday’s breakout of the 5,250 level and the previous local highs from March and early April. Last Monday, I noted ”The question arises: will the S&P 500 continue its bull market and reach a new record? It seems more and more likely; however, the index may see some short-term uncertainty as it approaches a series of the previous local highs and resistance levels.” This morning, stocks are likely to open 0.2% higher, as indicated by the S&P 500 futures contract. On Friday, I wrote “The most likely intraday scenario is more sideways trading action. Some investors seem to be taking profits off the table, yet no confirmed negative signals are evident.” It seems that today, it will be the same case again. Investor sentiment remained high last week, as indicated by the Wednesday’s AAII Investor Sentiment Survey, which showed that 40.9% of individual investors are bullish, while only 23.3% 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. The S&P 500 has accelerated its uptrend, breaking above the previous highs, as we can see on the daily chart. S&P 500 – Record-breaking rally Compared to the previous Friday’s closing price, the index gained 1.54%, extending its previous weekly advance of 1.9%. Quoting an article from a week ago: “The recent price action confirmed the importance of the 5,000 level as a medium-term support. It’s hard to say whether the market will continue its long-term uptrend; however, it will most likely remain…

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Filed under: News - @ May 20, 2024 6:24 pm