Stocks to consolidate after trade deal rally
By: bitcoin ethereum news|2025/05/15 01:45:04
0
Share
The S&P 500 extended its uptrend on Tuesday, but is the market becoming too overbought? The S&P 500 gained 0.72% on Tuesday, extending its short-term uptrend following the U.S.-China trade deal announced over the weekend and U.S.-Saudi Arabia AI investment plans. The index breached the 5,900 level, reaching its highest since March 3. While the market is becoming increasingly overbought, there are currently no negative signals. The S&P 500 is expected to open 0.1% higher today, and I think a period of consolidation is likely following the recent gains. Investor sentiment has recently improved, as reflected in last Wednesday’s AAII Investor Sentiment Survey, which reported that 29.4% of individual investors are bullish, while 51.5% are bearish. The S&P 500 index is set to open near the 5,900 level, likely pausing its rally. Key resistance remains at the 5,900-6,000 level. Nasdaq 100: Tech leadership continues The tech-heavy Nasdaq continues to outperform, with the index jumping 1.6% on Tuesday. Tech stocks remain in the spotlight, particularly with Nvidia posting strong gains after announcing the sale of 18,000 AI chips to Saudi Arabian company Humain for its data center. Cisco Systems earnings will be highlighted today, with analysts watching closely to see how the technology equipment firm views the impact from U.S. duties on its finances. VIX showing investor confidence The volatility index continues to trend lower as stock prices extend their gains. It dipped to a local low of 17.65 yesterday. Historically, a dropping VIX indicates less fear in the market, and rising VIX accompanies stock market downturns. However, the lower the VIX, the higher the probability of the market’s downward reversal. Conversely, the higher the VIX, the higher the probability of the market’s upward reversal. S&P 500 futures contract: Above 5,900 This morning, the S&P 500 futures contract is trading above the 5,900 level, moving sideways after gaining significantly since the beginning of the week. On Monday, I noted “This technical breakout, fueled by the weekend’s trade agreement, opens the door to potential moves toward 5,900-6,000.” This proved correct. However, some profit-taking could follow the initial surge. Support is currently near 5,850, marked by recent consolidation. Conclusion The S&P 500 is set to open near the 5,900 level, and I think the likely scenario is a short-term consolidation following recent rally. Today’s economic calendar is relatively light, but several Fed officials are set to speak. Investors will follow their comments as they attempt to gauge the future path of interest rates this year, especially after monthly inflation figures were lower than expected on Tuesday. Here’s the breakdown S&P 500 reached the highest since March 3, breaching the 5,900 level and extending gains for those who bought based on my Volatility Breakout System. The market is getting more overbought, but no negative signals are evident yet. Today, the S&P 500 is expected to open 0.1% higher, with consolidation the most likely scenario. Want free follow-ups to the above article and details not available to 99%+ investors? Sign up to our free newsletter today! Source: https://www.fxstreet.com/news/stocks-to-consolidate-after-trade-deal-rally-202505141317
You may also like

CZ Washington Dialogue: Crypto Entrepreneurs are Accelerating Their Return to the United States
CZ connects with the DC Blockchain Summit: The prison memoir is about to be published, harshly criticizing the inaccuracies of traditional media reports, and pointing out that if the U.S. wants to become the "global crypto capital," it urgently needs to introduce more sufficient market competition t...

Morning Report | Strategy increased its holdings by 1,031 bitcoins last week; Katana Blockchain acquires IDEX; NYSE completes rule change to eliminate trading limits on crypto ETF options
Overview of Important Market Events on March 23

Electric Capital: Tracking 501 types of yield-generating RWA assets, we discovered these patterns
From private credit to GPU leasing, from catastrophe bonds to music royalties, the range of tokenizable assets is much richer than the market perceives. However, the biggest challenge is not technology, but distribution—existing RWAs heavily rely on a few large deployers, and the concentration of ri...

Those who are cut off by AI will not disappear; they will become the creators of the next round of the economy
AI is not eliminating people, but rather the superstition of "stable careers": those who break the shackles of organizations and understand how to rewrite themselves are ushering in the ultimate revenge.

Stablecoins reshaping cross-border payments in Asia? Strategic panorama and investment opportunity analysis
With the popularity of local payment channels, the costs of traditional transfers have been significantly reduced, and the fees are now mainly concentrated in the domestic settlement phase, which is precisely what stablecoins cannot bypass.

Zuckerberg is building an AI agent to help him as CEO
Zuckerberg is reported to be personally developing a "CEO proxy" to accelerate information acquisition and reduce management layers.

Bloomberg: Swiss Private Bank Old Guard Rifts, Is Bitcoin the Spark?
For Marc Syz, this is both a bet on the digital asset track and a complete break from Switzerland's long-established private banking dynasty.

Zuckerberg is building an AI assistant to help him be CEO
Mark Zuckerberg has been reportedly personally developing a "CEO Proxy" to speed up information flow and reduce management layers.

Join WEEX AI Wars II: How WEEX API, Trader Skills Empower AI Trading Innovations
Join WEEX AI Wars II and be part of a global AI trading revolution. Compete with top AI agents and bots, showcase your strategies, and leverage WEEX API and Trader Skill to innovate, automate, and gain exposure in the AI trading ecosystem. Onboard your AI agent to WEEX AI Wars II NOW.

What kind of scenario will Backpack's TGE today play out in the bear market opening?
Currently, the Polymarket market gives an 87% probability to the event of its fully diluted valuation surpassing $200 million on the day after its launch.

Polymarket Ten Million Dollar Winner Retrospective: 40 Addresses, 100,000 Transactions, Only Three Ways to Make Money
The difference between the three is not in the parameters, but in playing entirely different games.

The Most Brutal Single-Month Plunge in 43 Years, Gold's Every Top Looks Like This
In the first three peaks, the central bank was not a net buyer of gold

Jiang Xueqin's Latest Interview Transcript: How to View the Current Global Changes
Iran's Next Move, Trump's War Plan, and Israel's Plot to Sabotage It

Maximize Your USDT Yield: The Weex Auto Earn Strategy for Passive Crypto Income
Learn how to earn interest on USDT with WEEX Auto Earn. Discover how stablecoins can generate passive income and why some platforms now offer up to 300% APR.

1 million investment yields over 1 billion return, Airwallex co-founder Liu Yueting reviews key life investments
At 25, all in with millions of dollars, at 34 worth 3 billion, Lucy Liu, co-founder of Airwallex, shares her ten-year wealth creation logic: betting on the right track, building a deep moat with licenses, and fully embracing AI intelligent finance by 2026.

Polymarket Millionaire Review: 40 addresses, 100,000 transactions, only three ways to make money
The differences between the three categories are not due to different parameters, but rather because they are playing completely different games.

Four Key Truths and Cost Traps Behind Polymarket LP Market Making Incentives
The potion left in the witch's hand is still poison; let's wait for Polymarket's major announcement tomorrow.

San Francisco Stablecoin Weekly Insights: The XYZ Coordinate System of 2026
Stablecoins 2026 New Narrative: No longer just "issuing coins," but reconstructing global financial infrastructure along three dimensions: AI payment authorization, RWA on-chain credit, and cross-border on-chain FX.
CZ Washington Dialogue: Crypto Entrepreneurs are Accelerating Their Return to the United States
CZ connects with the DC Blockchain Summit: The prison memoir is about to be published, harshly criticizing the inaccuracies of traditional media reports, and pointing out that if the U.S. wants to become the "global crypto capital," it urgently needs to introduce more sufficient market competition t...
Morning Report | Strategy increased its holdings by 1,031 bitcoins last week; Katana Blockchain acquires IDEX; NYSE completes rule change to eliminate trading limits on crypto ETF options
Overview of Important Market Events on March 23
Electric Capital: Tracking 501 types of yield-generating RWA assets, we discovered these patterns
From private credit to GPU leasing, from catastrophe bonds to music royalties, the range of tokenizable assets is much richer than the market perceives. However, the biggest challenge is not technology, but distribution—existing RWAs heavily rely on a few large deployers, and the concentration of ri...
Those who are cut off by AI will not disappear; they will become the creators of the next round of the economy
AI is not eliminating people, but rather the superstition of "stable careers": those who break the shackles of organizations and understand how to rewrite themselves are ushering in the ultimate revenge.
Stablecoins reshaping cross-border payments in Asia? Strategic panorama and investment opportunity analysis
With the popularity of local payment channels, the costs of traditional transfers have been significantly reduced, and the fees are now mainly concentrated in the domestic settlement phase, which is precisely what stablecoins cannot bypass.
Zuckerberg is building an AI agent to help him as CEO
Zuckerberg is reported to be personally developing a "CEO proxy" to accelerate information acquisition and reduce management layers.
