The S&P 500 continues to see a bit of buying at this point in time, as the overall market continues to look at the US economy and its strength as a driver, despite rates in America.
S&P 500
The S&P 500 has rallied to reach above the 7,600 level again, and we are now breaking above the 50-day EMA as well. This indicator is worth watching as it is important to technical traders and is well known.
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All things being equal, this is a market that continues to be very noisy, and I do think that it is probably only a matter of time before buyers return to it, as long-term Treasury yields are starting to fall again, and that helps the entire situation regardless. Beyond that, lower oil is giving a little bit more of a risk-on appetite.
The advance is very broad during the session
All 11 S&P sectors are higher, so that is very strong. The Fed's inflation credibility is helping long-duration yields fall, but 16 of 18 policymakers anticipate at least one more hike. That is one of the risks, as well as the headlines coming out of the Middle East.
Right now, NVIDIA is up a couple of percent, Amazon is up a couple of percent, and semiconductor shares, including AMD, Intel, and Marvell, are all rebounding. Short-term, this looks like a positive turn of events.
The real question will be whether or not we can break above the 7,800 level. Breaking above the 7,800 level would have more momentum coming back into the picture. The 7,500 level looks to be rather supportive. Right now, at least in the short term, that is my floor in the market. We need to stay above there for me to feel somewhat confident.
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