S&P 500: Eight-week winning streak extends – Deutsche Bank

💡 DMK Insight

The S&P 500’s eighth consecutive weekly gain is a bullish signal, but traders need to watch for potential pullbacks. Falling oil prices are easing inflation concerns, which is a positive backdrop for equities. However, futures being slightly below pre-strike levels suggests some hesitance among traders. This could indicate profit-taking or caution ahead of key economic data releases. If the index breaks below recent support levels, it could trigger a wave of selling, especially among short-term traders looking to lock in gains. Keep an eye on the 4,400 level as a critical support point; a breach could lead to increased volatility. On the flip side, if the S&P 500 continues its upward trajectory, it could attract more institutional buying, pushing it towards the 4,500 mark. Traders should also monitor oil prices closely, as any unexpected spikes could reignite inflation fears and impact market sentiment significantly.