S&P 500 Still Treading Waters, NVDA in Focus

Table of contents

S&P 500 Still Treading Waters, NVDA in Focus

Conclusion

The S&P 500 index is likely to further extend its short-term consolidation this morning after opening slightly lower, as indicated by the futures contract. However, later in the day, the market may become much more lively. Investors are awaiting the FOMC Meeting Minutes release at 2:00 p.m., and especially the already-mentioned earnings from NVDA.

The S&P 500 remains close to a new record high, and no confirmed negative signals are evident as investor sentiment remains elevated. However, that overly bullish sentiment, coupled with low VIX readings, may be worrying for stocks in the short term. Some profit-taking may be on the horizon.

On May 7, I wrote “(…) the market may pause or even retrace some gains. With most of the earnings season over (there is only one very important release left – NVDA on May 22) and the FOMC Rate Decision release behind us, expect a period of uncertainty.”

In my Stock Price Forecast for May, I noted “Where will the market go in May? There’s a popular saying: ‘Sell in May and go away,’ but statistics don’t consistently support such clear seasonal patterns or cycles. The safe bet for May is likely sideways trading, with investors digesting recent data suggesting that inflation may not be transitory, and the Fed could maintain its relatively tight monetary policy. However, economic data isn’t entirely negative, and strong earnings from companies may continue to fuel the bull market.”

For now, my short-term outlook remains neutral.

The full version of today’s analysis – today’s Stock Trading Alert – is bigger than what you read above, and it includes the additional analysis of the Apple (AAPL) stock and the current S&P 500 futures contract position. I encourage you to subscribe and read the details today. Stocks Trading Alerts are also a part of our Diamond Package that includes Gold Trading Alerts and Oil Trading Alerts.

And if you’re not yet on our free mailing list, I strongly encourage you to join it – you’ll stay up-to-date with our free analyses that will still put you ahead of 99% of investors that don’t have access to this information. Join our free stock newsletter today.

Source Reference

Latest stories