S&P 500 Index Grinds Higher But Near-Term Upside Limited

Mark Newton

S&P 500 Trading Outlook – (3-5 Days):  Bullish barring a break of 2900 

Tech, Financials and Industrials stocks are all still positive and ETFs for these sectors have moved to new highs for 2019 with the Technology Sector (XLK) and Consumer Discretionary Sector (XLY) hitting new all-time highs.

S&P 500 Index lines in the sand: Above 2915 is bullish for a move up to 2945 – 2950. A move under 2877 is important for the bear case.

Looking back at last week, we saw some promising developments with XLY, XLK pushing back to new high territory while XLI moved back to new 2019 highs.

The NASDAQ 100 actually pushed up and made a new all-time closing high while DJIA, CCMP & SPX are promising in this regard that new highs can likely happen sometime this year. Healthcare has been the big laggard in recent weeks, showing a rather capitulatory decline and indeed important at 13.3% the second largest sector for the S&P 500.

For now though, the strength in sectors like Industrials and Financials have helped to bail out Technology, which itself has not been all that weak of late.

Overall, insufficient weakness this past week to be all that negative heading into late April from a price perspective, but sentiment is sounding a clear warning now in getting very optimistic and something to watch carefully.

If you have an interest in seeing timely intra-day market updates on my private twitter feed, please follow @NewtonAdvisors.  Also, feel free to send me an email at info@newtonadvisor.com regarding how my Technical work can add alpha to your portfolio management process.

Twitter:  @MarkNewtonCMT

Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

NOT INVESTMENT ADVICE – PLEASE READ INVESTMENT DISCLAIMER.