The U.S. stock market was little changed as investors took some profits yesterday, fearing the major indexes would retreat from their recently established all-time highs. However, the S&P500 index managed to reach a new high at 1,697.61, coming closer to the possible psychological resistance level of 1,700. We are quite clearly above the May 22 high of 1,687.18, so the old Wall Street saying “Sell in May and go away” didn’t work out this time. Though the possibility of an extended medium-term consolidation scenario still cannot be excluded. There are no clear sell signals on the daily chart yet, although some technical indicators are in the overbought territory, giving warning signs:

The cash market is ought to open a little higher today, as the European stock market indexes have gained 0.1-0.3%. There are no important U.S. economic data announcements, but earnings releases may still affect investors’ sentiment, either positively or negatively. The S&P500 futures contract (CFD) has been maintaining relatively low volatility recently, creeping higher towards new highs and sustaining its upward trend lines, as we can see on the CFD’s 15-minute chart:

Thank you,
Paul Rejczak