The S&P 500 managed to retrace its intraday losses yesterday - but which direction will it take next?
On Monday, the stock market opened slightly lower, but after reaching an intraday low around 5,861, the S&P 500 closed 0.41% higher, moving above the 5,900 level. It continues to fluctuate within a consolidation below the key psychological barrier at 6,000.
This morning, the market is likely to open virtually flat, likely extending its consolidation ahead of a series of important economic data releases. At 10:00 a.m. today, investors will be watching the JOLTS Job Openings report. Tomorrow brings the ADP Non-Farm Employment Change and ISM Services PMI, followed by the monthly jobs report on Friday.
Investor sentiment has deteriorated, as reflected in the last Wednesday’s AAII Investor Sentiment Survey, which reported that 32.9% of individual investors are bullish, while 41.9% are bearish.
The S&P 500 remains in a key resistance zone between 5,900 and 6,000.
S&P 500 Futures: Still Trading Sideways
This morning, the S&P 500 futures contract is trading above the 5,900 level, having rebounded from yesterday’s decline. Key support remains near 5,850 (recent lows), while resistance is at the 6,000 mark.
Conclusion
On Friday, my outlook was confirmed, as I noted that “the S&P 500 is likely to remain in consolidation today. Being the final trading day of the month, we may see some “window dressing” into the close - which could offer support to the bulls”.
Although no clear negative signals have emerged, upside momentum remains limited. Investors are now focused on the upcoming JOLTS Job Openings report at 10:00 a.m.
Here’s the breakdown:
- The S&P 500 remains in consolidation below key 6,000 resistance.
- No clear negative signals yet, but sideways consolidation may continue amid tariff concerns.
- The market is awaiting a series of economic data releases this week.
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Thank you.
Paul Rejczak
Stock Trading Strategist
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