Global markets surged Sunday night after signs of easing tensions between major economies. S&P 500 futures jumped over 1.34% (5754) to surpass our initial target of 5700 and now 5750, which we have discussed all week, while the market was calling for a consolidation.
Over the weekends, investors welcome good news:-
- Progress in US-China trade talks (though tariff details remain unclear)
- Potential de-escalation in Ukraine (Zelensky agrees to Putin meeting)
- Ceasefire between India and Pakistan (mediated by the U.S.)
Early Market Reactions: Safe Havens Crumbling: Gold, Treasuries Drop
- Risk-On Sentiment: Safe havens like gold and Treasuries dipped
- Cyclicals Outperform: Oil and industrial commodities rose
- Currency Moves: The yen weakened as investors shifted to riskier assets
Key Resistance Ahead
The S&P 500 is approaching 5,800, a zone that could determine whether the rally continues or stalls after a 20% surge since early April. Will the market consolidate?
What’s Next?
- Does the rally hold after the initial gap up? It seems to indicate a likely risk-on rally on Monday for US risk assets.
- Sector Rotation: Cyclicals (industrials, materials) to lead the Rally?
- Bond Market Signals: will yields threaten growth stocks?: If yields stay contained, growth stocks could benefit
Bottom Line
While the geopolitical news is encouraging, the market’s next move requires patience—wait for confirmation before assuming the uptrend will continue. Let the market signal when it's time to show consolidation, which is why we have Intraday Market Update five days a week in the page chat group to give our subscribers a real edge and help them stay ahead of the market.
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