The S&P 500 continues to see a bit of support, despite the fact that the market is struggling to hold onto gains.
This index continues to be interesting to me, as we are likely to remain in the same trend longer-term.
The S&P 500 rallied a bit during the early part of the trading session on Friday but turned around to give back those gains pretty quickly. We continue to see a lot of hesitation due to Treasury yields in America rising. In fact, the 10-year yield is now at 5% again, and that is keeping the pressure up on equity valuations.
The 50-day EMA is currently flat, and that's basically where we're hanging around near the 7,600 level. It is also worth noting that oil and inflation both continue to be a major problem as well. Positioning overall has become a little bit more defensive, so with that, it does make a certain amount of sense that we get choppiness. This is a market that will remain supported, but not necessarily massively bullish.
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Some of the biggest movers today are Broadcom, Alphabet, NVIDIA, and Amazon rallying. But declines in Apple, Microsoft, and Meta are preventing any type of clean advance. That being said, we are heading into the weekend, and it's probably worth noting that there are potential headlines over the weekend that could cause major issues, as this is a market that obviously has a lot to think about.
With this week being so heavily driven by central banks, I suspect we will start to see Middle East headlines be a major driver again. All things being equal, we are still bullish overall, looking at this from a longer-term standpoint, but that doesn't mean that we just simply rip higher from here.
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