The stock market opened lower on Monday, but managed to recover most of its losses by the end of the day, closing just 0.76% lower. The S&P 500 closed slightly below the 6,000 level, showing signs of consolidation.
### S&P 500 Update
– The S&P 500 is expected to open flat today, continuing its consolidation phase.
– Investors are eagerly awaiting key economic data at 10:00 a.m. and earnings reports from major companies after the market closes.
Investor sentiment declined last week as per the AAII Investor Sentiment Survey, with 41.0% of individual investors feeling bullish and 34.0% feeling bearish. The S&P 500 index is still consolidating, as seen on the daily chart.
### Nasdaq 100 Rebounded from 21,000
– The Nasdaq 100 closed 0.84% lower after rebounding from a daily low of 21,004.35.
– Major tech stocks are trading sideways despite ongoing earnings releases.
– This week’s earnings reports include big names like Apple, Microsoft, and Amazon, which could contribute to elevated volatility.
Resistance for the Nasdaq 100 is around 21,800, while support is at 21,000 based on recent lows.
### VIX: Briefly Above 20
– The VIX, a measure of market volatility, briefly spiked above 20 on Monday before pulling back.
– Historically, a dropping VIX indicates less fear in the market, while a rising VIX accompanies stock market downturns.
– The current VIX level suggests some uncertainty in the market, which could lead to increased volatility.
### S&P 500 Futures Contract Trades Above 6,000
– The S&P 500 futures contract is trading above 6,000 today, bouncing back from a local low of around 5,936.
– Support levels are at 5,900-5,950, with resistance still strong at 6,000-6,050.
### Conclusion
Stocks are expected to open flat today, maintaining a sense of uncertainty despite recent rebounds. Earnings reports and economic data releases will be closely monitored this week, with further consolidation likely.
In the short term, the market outlook remains neutral. The S&P 500 is expected to continue fluctuating, with increased volatility following the post-election rally. While no confirmed bearish signals have appeared yet, the market’s ongoing consolidation could suggest a medium-term topping pattern ahead of a potential downward correction.
Stay tuned for more updates as the market evolves.