Stocks to consolidate after trade deal rally
The post Stocks to consolidate after trade deal rally appeared on BitcoinEthereumNews.com.
The S&P 500 extended its uptrend on Tuesday, but is the market becoming too overbought? The S&P 500 gained 0.72% on Tuesday, extending its short-term uptrend following the U.S.-China trade deal announced over the weekend and U.S.-Saudi Arabia AI investment plans. The index breached the 5,900 level, reaching its highest since March 3. While the market is becoming increasingly overbought, there are currently no negative signals. The S&P 500 is expected to open 0.1% higher today, and I think a period of consolidation is likely following the recent gains. Investor sentiment has recently improved, as reflected in last Wednesday’s AAII Investor Sentiment Survey, which reported that 29.4% of individual investors are bullish, while 51.5% are bearish. The S&P 500 index is set to open near the 5,900 level, likely pausing its rally. Key resistance remains at the 5,900-6,000 level. Nasdaq 100: Tech leadership continues The tech-heavy Nasdaq continues to outperform, with the index jumping 1.6% on Tuesday. Tech stocks remain in the spotlight, particularly with Nvidia posting strong gains after announcing the sale of 18,000 AI chips to Saudi Arabian company Humain for its data center. Cisco Systems earnings will be highlighted today, with analysts watching closely to see how the technology equipment firm views the impact from U.S. duties on its finances. VIX showing investor confidence The volatility index continues to trend lower as stock prices extend their gains. It dipped to a local low of 17.65 yesterday. Historically, a dropping VIX indicates less fear in the market, and rising VIX accompanies stock market downturns. However, the lower the VIX, the higher the probability of the market’s downward reversal. Conversely, the higher the VIX, the higher the probability of the market’s upward reversal. S&P 500 futures contract: Above 5,900 This morning, the S&P 500 futures contract is trading above…
Filed under: News - @ May 14, 2025 5:26 pm