S&P 500 Fundamental Forecast – May 31, 2016

The S&P 500 is on holiday today celebrating the US Memorial Day. In futures trading the index is slightly higher at 2099.06 as traders keep an eye on the US dollar and the Fed in coming days.  All three main indexes booked their biggest weekly gains in several weeks as traders headed for a long weekend. U.S. markets will be closed on Monday for the Memorial Day holiday.

“It’s appropriate for the Fed to gradually and cautiously increase our overnight interest rate over time,” Yellen said at a high-profile visit to Harvard University on Friday. That means a move could be appropriate in coming months, she said.

Earlier this month, minutes from the U.S. central bank’s April meeting took markets by surprise by indicating a rate increase in June is still on the table.

The S&P 500 rose 8.96 points, or 0.4%, to 2,099.06, with all ten main sectors finishing in positive territory. Energy shares were weighed down by falling oil prices. Financials, technology and telecoms shares led the gains.

“It is encouraging to see financials advancing but until we break past the 2,100 level, it is difficult to predict which way this market is going,” Antonello said. The index closed within 1 point of the level many traders consider as a resistance level and booked a 2.3% weekly gain.

Such a bunching of silent sessions is actually quite unusual. Over the past two decades, there has only been one other stretch of 16 sessions out of which four were moves of less than 0.03 percent. That happened in August 2014.

However you slice it, small changes have become much more common. More than half of the S&P 500’s daily moves this year have seen the index rise or fall less than half a percent; for comparison, that describes less than a quarter of its moves over the last 10 years.

Volume has been markedly low as well. And the market stillness hasn’t escaped the attention of Wall Street.

FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole. Please click on the links to find the most recent reports for this asset.

Upcoming Economic Events that you should be monitoring:

Tuesday, May 31, 2016

Government Bond Auctions

Date Time       Country           Auction

May 30 11:10 Italy Holds bond auction

Jun 01 10:30 Denmark Holds bond auction

Jun 01 11:30 Germany Eur 4bn Apr 2021 Bobl

Jun 01 11:30 UK 1.5% 2021 Gilt

Jun 01 17:20 Sweden Announces details of bond auction on Jun 08

Jun 02 10:30 Spain Holds bond auction

Jun 02 11:03 Sweden Holds I/L bond auction

Jun 02 11:50 France Holds bond auction