S&P 500 is finding it difficult to sustain above 2,400
The relief rally that occurred after France’s election results were declared on May 7, 2017, failed to push US markets (SPY) higher.
The S&P 500 Index brushed the 2,400 mark on May 8, and it’s since struggled to move beyond that level.
Speculators have reduced their net positions
According to the Commitment of Traders report released on May 12, which lists the positions of all qualifying traders as of May 9, the number of speculative positions for the S&P 500 continued to fall.
Net large speculator contracts on the S&P 500 Index stood at -5,400, a fall of 3,480 compared to the previous week. The fall could imply that traders turned restless after the index failed to breach the key 2,400 level. Weaker US economic data in the previous week also added to the shift in the sentiment.
What to expect in the week ahead
Investors should keep an eye out for April’s US housing start and industrial production data. A good showing of these numbers would likely support market sentiments, and the opposite would likely lead to further falls in the long positions on US indexes.