Will the S&P 500 continue its advances amid trade talks and tomorrow's CPI data?
Monday's trading session showed little change as the S&P 500 index closed 0.09% higher, remaining slightly above the 6,000 level. Today, it is expected to open 0.1% higher. I think the market is likely to remain volatile and move sideways amid ongoing U.S.-China trade talks and tomorrow's key Consumer Price Index release.
Investor sentiment remained mixed, as reflected in the last Wednesday’s AAII Investor Sentiment Survey, which reported that 32.7% of individual investors are bullish, while 41.4% are bearish.
The S&P 500 continues to trade near the 6,000 level.
S&P 500 Futures: Remaining Above 6,000
This morning, the S&P 500 futures contract continues to trade above the 6,000 level, continuing to move sideways after Friday's strong session.
The nearest support is now near 5,950, while resistance is at 6,020, followed by 6,050.
Conclusion
The S&P 500 is likely to begin Tuesday's trading session on a slightly positive note, extending a short-term consolidation. The market will probably move when any U.S.-China trade-deal-related news hits.
Investors are cautiously optimistic ahead of key economic data releases this week, including the Consumer Price Index (CPI) report on Wednesday.
Will the uptrend continue? There are currently no strong negative signals, but recent volatility suggests uncertainty. The market may "climb a wall of worry," or it may consolidate around the 6,000 level.
Here’s the breakdown:
- The S&P 500 remained above the 6,000 level on Monday, extending gains for those who bought based on my Volatility Breakout System.
- There are no clear bearish signals, but upside may be limited due to ongoing tariff concerns.
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Thank you.
Paul Rejczak
Stock Trading Strategist
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