Stocks to consolidate after trade deal rally
By: bitcoin ethereum news|2025/05/15 01:45:04
0
Share
The S&P 500 extended its uptrend on Tuesday, but is the market becoming too overbought? The S&P 500 gained 0.72% on Tuesday, extending its short-term uptrend following the U.S.-China trade deal announced over the weekend and U.S.-Saudi Arabia AI investment plans. The index breached the 5,900 level, reaching its highest since March 3. While the market is becoming increasingly overbought, there are currently no negative signals. The S&P 500 is expected to open 0.1% higher today, and I think a period of consolidation is likely following the recent gains. Investor sentiment has recently improved, as reflected in last Wednesday’s AAII Investor Sentiment Survey, which reported that 29.4% of individual investors are bullish, while 51.5% are bearish. The S&P 500 index is set to open near the 5,900 level, likely pausing its rally. Key resistance remains at the 5,900-6,000 level. Nasdaq 100: Tech leadership continues The tech-heavy Nasdaq continues to outperform, with the index jumping 1.6% on Tuesday. Tech stocks remain in the spotlight, particularly with Nvidia posting strong gains after announcing the sale of 18,000 AI chips to Saudi Arabian company Humain for its data center. Cisco Systems earnings will be highlighted today, with analysts watching closely to see how the technology equipment firm views the impact from U.S. duties on its finances. VIX showing investor confidence The volatility index continues to trend lower as stock prices extend their gains. It dipped to a local low of 17.65 yesterday. Historically, a dropping VIX indicates less fear in the market, and rising VIX accompanies stock market downturns. However, the lower the VIX, the higher the probability of the market’s downward reversal. Conversely, the higher the VIX, the higher the probability of the market’s upward reversal. S&P 500 futures contract: Above 5,900 This morning, the S&P 500 futures contract is trading above the 5,900 level, moving sideways after gaining significantly since the beginning of the week. On Monday, I noted “This technical breakout, fueled by the weekend’s trade agreement, opens the door to potential moves toward 5,900-6,000.” This proved correct. However, some profit-taking could follow the initial surge. Support is currently near 5,850, marked by recent consolidation. Conclusion The S&P 500 is set to open near the 5,900 level, and I think the likely scenario is a short-term consolidation following recent rally. Today’s economic calendar is relatively light, but several Fed officials are set to speak. Investors will follow their comments as they attempt to gauge the future path of interest rates this year, especially after monthly inflation figures were lower than expected on Tuesday. Here’s the breakdown S&P 500 reached the highest since March 3, breaching the 5,900 level and extending gains for those who bought based on my Volatility Breakout System. The market is getting more overbought, but no negative signals are evident yet. Today, the S&P 500 is expected to open 0.1% higher, with consolidation the most likely scenario. Want free follow-ups to the above article and details not available to 99%+ investors? Sign up to our free newsletter today! Source: https://www.fxstreet.com/news/stocks-to-consolidate-after-trade-deal-rally-202505141317
You may also like

Business Opportunities of Tokenized Stocks
In this article, we will outline the lifecycle of tokenized stocks, analyze the current market landscape, and highlight the emerging business opportunities.

In-depth research report on the Resolv protocol hacking incident, who is the final payer?
This incident reveals a fundamental weakness in Delta's stablecoin - the coupling point between the minting logic and off-chain signatures/oracles is the most vulnerable attack surface of the system. Any capital efficiency design of "1 dollar minted for 1 dollar" must be predicated on extremely rigo...

Crypto Market Sees Large Liquidations: $272 Million in Long Positions Affected
Key Takeaways In the last 24 hours, $272 million worth of contracts were liquidated across the entire crypto…

Whale Increases BTC Shorts and Bets on Crude Oil: A Strategic Crypto Move
Key Takeaways A prominent whale, known as “UnRektCapital,” has strategically escalated its short position in Bitcoin while simultaneously…

Hackers in Brazil Use Fake Google Play Store to Steal Cryptocurrency
Key Takeaways Hackers in Brazil are exploiting fake Google Play Store pages to spread Android malware. Infected devices…

Exchanging 200,000 for nearly 100 million, DeFi stablecoins face another attack
DeFi project teams cannot assume that the modules they control are necessarily secure.

The underlying business agreement of the trillion-dollar Agent economy: Understanding ERC-8183, it's not just about payments, but the future
This article systematically analyzes the technical principles and commercial value of the ERC-8183 protocol from the dimensions of technical architecture, core mechanisms, application scenarios, and ecological collaboration.

When Wall Street's ETH begins to "yield": Looking at the asset properties of Ethereum from BlackRock's ETHB
ETH is undergoing a paradigm shift from a "volatile asset" to a "yield-generating cash flow asset."

The Power of Agency: The Agentic Wallet and the Next Decade of Wallets
In 1984, Apple killed the command line with a mouse. In 2026, Agent is killing the mouse.

Understanding x402 and MPP in One Article: Two Routes for Agent Payments
x402 makes payments within the agreement, while MPP makes system-level payments.

Particle Founder: The entrepreneurial insights I have gained the most from in the past year
Stop lean startup, stop lightning entrepreneurship, and think carefully about what your product aspirations are.

Huang Renxun's latest podcast transcript: The future of Nvidia, the development of embodied intelligence and agents, the explosion of inference demand, and the public relations crisis of artificial intelligence
The competition in the future is not just about whose model is larger or whose computing power is stronger, but also about who understands the industry better, who can embed AI more deeply into real processes, and who can organize these capabilities into a runnable and scalable system.

OKX Ventures Research Report: AI Agent Economic Infrastructure Research Report (Part 1)
The existing infrastructure is hostile to the Agent economy. Agents can think and act independently at the "capability level," but at the "economic level," they are still locked into infrastructure designed for humans.

The migration of settlement rights: B18 and the institutional starting point of on-chain banks
In the traditional system, banks decide the settlement; in the on-chain system, code begins to take over this responsibility.

From Tencent and Circle: Looking at the Simple and Difficult Questions of Investment
The AI narrative continues to ferment, but the recent performance of related stocks varies, with some in the midst of summer and others as if in winter.

The second half of stablecoins no longer belongs to the crypto circle
What Coinbase doesn't want, Mastercard is eager to buy.

Cursor "Shell" Kimi Controversy Reversed: From Copyright Infringement Allegations to Authorized Collaboration, China's Open Source Model Once Again Becomes a Global AI Foundation
Cursor was accused of being based on Kimi K2.5, which sparked controversy, and was later confirmed to be compliant through Fireworks AI due diligence.

The Real Reason Tokens Don't Sell: 90% of Crypto Projects Overlook Investor Relations
Provide an Investor Relations Best Practices Guide for Crypto Projects.
Business Opportunities of Tokenized Stocks
In this article, we will outline the lifecycle of tokenized stocks, analyze the current market landscape, and highlight the emerging business opportunities.
In-depth research report on the Resolv protocol hacking incident, who is the final payer?
This incident reveals a fundamental weakness in Delta's stablecoin - the coupling point between the minting logic and off-chain signatures/oracles is the most vulnerable attack surface of the system. Any capital efficiency design of "1 dollar minted for 1 dollar" must be predicated on extremely rigo...
Crypto Market Sees Large Liquidations: $272 Million in Long Positions Affected
Key Takeaways In the last 24 hours, $272 million worth of contracts were liquidated across the entire crypto…
Whale Increases BTC Shorts and Bets on Crude Oil: A Strategic Crypto Move
Key Takeaways A prominent whale, known as “UnRektCapital,” has strategically escalated its short position in Bitcoin while simultaneously…
Hackers in Brazil Use Fake Google Play Store to Steal Cryptocurrency
Key Takeaways Hackers in Brazil are exploiting fake Google Play Store pages to spread Android malware. Infected devices…
Exchanging 200,000 for nearly 100 million, DeFi stablecoins face another attack
DeFi project teams cannot assume that the modules they control are necessarily secure.