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19 May 2025,05:47

Daily Market Analysis

S&P 500 Inches Toward 6,000 Milestone Amid Slowing Momentum

19 May 2025, 05:47

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Key Takeaways:

*S&P remains bullish but faces strong resistance at below the 6,000 mark. 

*Jerome Powell’s speech and U.S. Retail Sales today could pivot S&0 500 direction. 

Market Summary:

The S&P 500 extended its gains in the last session, though signs of waning momentum and a softer tone in Asian futures are prompting market participants to brace for a potential pullback. Rising profit-taking sentiment and cautious positioning ahead of key U.S. economic data are contributing to the tempered risk appetite.

Global equities were previously buoyed by positive developments on both the UK-U.S. and China-U.S. trade fronts. In a notable move, China announced it would lift its suspension on exports of rare earths and dual-use technologies to the U.S., a decision that helped stoke investor optimism and drive risk assets higher.

Looking ahead, attention will turn to the U.S. retail sales data, a key barometer of consumer health. A stronger-than-expected reading could reinforce confidence in the U.S. economy and potentially push the S&P 500 higher. Market participants will also closely monitor remarks from Fed Chair Jerome Powell, who is scheduled to speak following the data release. Any policy clues could shift sentiment and influence the near-term trajectory of the index.

Meanwhile, Asian equities are showing signs of fatigue, with the initial boost from the China-U.S. trade truce appearing to fade. Traders are expected to gauge the tone in Asian markets before the New York session gets underway.

Technical Analysis:

S&P 500, H4

The S&P 500 extended its advance and is edging closer to the key psychological milestone at the 6,000 mark. However, after a gap higher at the open, the index traded largely flat, signaling a potential pause in bullish momentum and raising the prospect of a near-term technical retracement.

On the momentum front, indicators remain supportive of the broader uptrend. The Relative Strength Index (RSI) has broken into overbought territory, reflecting sustained buying interest. Similarly, the MACD continues to trend higher, underscoring the strength of the prevailing bullish momentum.

Resistance levels: 6120.00, 6310.00

Support levels: 5630.00, 5378.00

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