Stocks: Consolidation After Rally, Awaiting Economic Data and Earnings

Paul-Rejczak Paul Rejczak 5 h 3 min ago

Will stocks maintain their gains as investors await crucial economic data and mega-cap earnings?

The S&P 500 closed 0.06% higher on Monday, pausing after last week's rally of almost 5%. The market is now in a consolidation as investors await key earnings releases from major tech companies - Visa today after session close, Microsoft and Meta tomorrow, followed by Amazon and Apple on Thursday. This morning, futures suggest the S&P 500 will open approximately 0.1% lower.

Investor sentiment has worsened, as shown in last Wednesday’s AAII Investor Sentiment Survey, which reported that only 21.9% of individual investors are bullish, while 55.6% are bearish.

The S&P 500 remains above the 5,500 level, as we can see on the daily chart.

Stocks: Consolidation After Rally, Awaiting Economic Data and Earnings - Image 1

 

S&P 500 Futures Contract: More Fluctuations

This morning, the S&P 500 futures contract  is trading along the 5,550 level, extending its consolidation after rallying last week. The market appears to be taking a breather before the release of key economic data - JOLTS and CB Consumer Confidence scheduled for 10:00 a.m. today.

Stocks: Consolidation After Rally, Awaiting Economic Data and Earnings - Image 2

 

Conclusion

The S&P 500 has paused its advance after last week's strong performance, currently in a consolidation.

Last week, the market advanced on several positive catalysts, including easing tariff fears, potential peace developments in Ukraine, and anticipated quarterly earnings releases. That said, it remains uncertain whether this is a new uptrend or merely a correction within the downtrend.

Here’s the breakdown:

  • S&P 500 gained 0.06% on Monday, consolidating after last week's rally of nearly 5%.
  • The market is awaiting significant earnings releases from tech giants this week.
  • Key economic data (JOLTS and Consumer Confidence) may provide direction today.


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Paul Rejczak
Stock Trading Strategist