FundamentalOverview

The S&P 500 continuesto be supported given the lack of bearish drivers. We haven’t got anymeaningful catalyst since the NFP report other than Trump’s tariff letters thatwere largely ignored by the market given that everyone expects them to be justthe usual negotiating tactic.

Next week, we have the USCPI report and that could trigger some big moves in the market. To keep thetrend going, we would likely need soft inflation figures as a hot report mighttrigger a deeper pullback given the positioning.

In the bigger picturethough, given that the Fed's reaction function remains to either wait more orcut, the market should eventually get back to its upward trend.

S&P 500Technical Analysis – Daily Timeframe

On the daily chart, we cansee that the S&P 500 is consolidating around the all-time highs after avery strong rally. From a risk management perspective, the buyers will have abetter risk to reward setup around the previous all-time high at 6,160-ishlevel to position for the continuation of the uptrend. The sellers, on theother hand, will want to see the price breaking lower to pile in for a dropinto the 6,000 level next.

S&P 500 TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that we have an upward trendline defining the uptrend. If we were toget a pullback all the way into the trendline, we can expect the dip-buyers tolean on it to position for a rally into new all-time highs with a better riskto reward setup. The sellers, on the other hand, will look for a break lower toincrease the bearish bets into the 5,800 level next.

S&P 500 TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee that we have a minor resistance around the 6,315 level. The sellers willlikely continue to step in around the resistance with a defined risk above itto keep targeting a pullback into the 6,160 level. The buyers, on the otherhand, will look for a break higher to increase the bullish bets into newall-time highs.

There’s also a minor upwardtrendline that can offer support for the dip-buyers, while the sellers willlikely increase the bearish bets into new lows on a breakout. The red linesdefine the average daily range for today.

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