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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

S&P 500 Momentum Report

The S&P 500 has registered its third straight week of gains, as further dips in US treasury yields and a weaker US dollar continue to be supportive of risk-on sentiments.

USA Source: Bloomberg

S&P 500 stands less than 2% from its year-to-date high

The S&P 500 has registered its third straight week of gains, as further dips in US treasury yields and a weaker US dollar continue to be supportive of risk-on sentiments. Thus far, rate expectations have been well-anchored for a peak in US interest rates, finding validation from the downside surprise in US inflation lately while basking in hopes of a potential soft landing ahead. Ahead, the 200-day moving average (MA) for the US dollar will be put to the test this week, with any breakdown of the key trendline potentially setting the stage for more gains in Wall Street.

Thus far, market sentiments have reverted back into ‘greed’ territory from previous ‘fear’ territory, but remain a distance from extreme overbought conditions which suggests some room for bullish sentiments to push on further. Market breadth has also been on the rise, which points to more broad-based participation in the market rally. Notably, small-caps (Russell 2000) have rallied 8.5% over the past month, versus the S&P 500’s 7.8% and DJIA’s 6.7%.

The Federal Open Market Committee (FOMC) minutes will be in focus amid the holiday-shortened week, which is likely to reiterate the Federal Reserve (Fed)'s more cautious tone on tightening but for rates to stay high-for-longer. Previously, the central bank noted that the risks of doing too much versus too little on inflation was ‘more balanced’ and sticking to its usual script will likely keep rate expectations unchanged for a prolonged Fed rate hold ahead.

S&P 500 Analysis

Technical analysis: S&P 500 eyeing for a retest of its year-to-date high

After a break above its Ichimoku cloud resistance and a downward trendline on the daily chart, the S&P 500 is now standing less than 2% away from its year-to-date high at the 4,600 level. On the weekly chart, a bullish crossover has been formed on moving average convergence/divergence (MACD) while its weekly relative strength index (RSI) heads further above its key 50 level, pointing towards building positive momentum in place. Ahead, the 4,600 level will present the next level of resistance to overcome, with any successful break potentially leaving its January 2022 all-time high at the 4,800 level on watch next. On the downside, the 4,400 level may be support to hold, where its 100-day MA stands.

US 500 Cash

Source: IG charts

Sector performance

Market sentiments remained risk-on last week, with the S&P 500 delivering its third straight week of gains and all 11 S&P 500 sectors were in the green. Defensive sectors (healthcare, consumer staples) generally underperformed amid the stronger appetite for risk-taking, while gains in the energy sector were capped by some indecision in oil prices. On the other hand, real estate and financials managed to pull ahead with a close to 4% gain. Big tech stocks resumed their moves higher as well, notably with a 5.3% weekly gain in Tesla. Ahead this week, Nvidia will be the last of the ‘Magnificent Seven’ to release its results, which may hold the key to dictate whether the tech rally can have more room to run this week. Year-to-date, both the technology and communication services sectors are up close to a stellar 50%, while the consumer discretionary sector is up 32%.

SPX sector returns: One-week and one-month

Source: Refinitiv

SPX sector returns: One-month and year-to-date

Source: Refinitiv

Sector ETFs Summary

Source: Refinitiv
*Note: The data is from 14th – 20th November 2023.

Top 15 Winners and Losers

Source: Refinitiv
*Note: The data is from 14th – 20th November 2023.

Top stocks by sectors

Source: Refinitiv
*Note: The data is from 14th – 20th November 2023.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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