CEG earnings and CPI/PPI this week will test S&P 500’s resilience

💡 DMK Insight

The S&P 500 and Nasdaq hitting all-time highs signals strong bullish momentum, but traders need to watch for potential exhaustion. With recent candles closing near their highs, it suggests buyers are still in control. However, this can also set the stage for a pullback if profit-taking kicks in. Keep an eye on key support levels; for the S&P 500, a break below its recent highs could trigger a wave of selling. Additionally, the broader market context shows that while tech stocks are thriving, sectors like energy and financials are lagging, which could indicate a narrowing breadth in the rally. If these indices start to falter, it might affect correlated assets like tech ETFs or even cryptocurrencies, which often follow risk-on sentiment. Watch for the next few trading sessions to see if the momentum can sustain itself or if we see a shift in sentiment. A close below the recent highs could signal a shift in trend, so stay alert for that potential reversal.