S&P 500 Forecast: Tech and Healthcare Lift Index While Consumer Sentiment Drops Key Points

S&P 500 Heat Map Shows Tech and Healthcare In the Green

Today’s trading session for the S&P 500 Index shows specific tech and healthcare names doing the heavy lifting. The gains came from AAPL up 1.54%, AMD up 3.97%, and a massive jump in QCOM by 11.78%. Healthcare was also strong during the session. LLY jumped 2.10% and MRK was up 5.43%. Financials saw some strength with JPM up 1.06%.

There was some red on the board. NVDA fell 1.15%. GOOGL dropped 0.53% and AMZN was down 0.19%. Retail names WMT and COST also slipped. Overall the Index managed to stay in the green.

S&P 500 Heat Map

Michigan Consumer Sentiment Drops in May

The Michigan Consumer Sentiment Final reading for May came in at 44.8. This missed the forecast of 48.2 and is down from the prior reading of 49.8.

This shows weaker consumer confidence. A drop in sentiment could signal a cooling economy. This weak data point might take some pressure off inflation concerns and keep the Federal Reserve from hiking rates further.

Michigan Consumer Sentiment

US 10-Year Yield Renko Holds Above Medium and Long Term MAs

The US 10-year yield had a slight pullback during the session. It dropped to 4.550%. While this is a small move lower, any drop in yields usually provides support for equities.

The Supertrend on the yield chart is still in an Up Trend. The yield is also above its 50-SMA at 4.438% and 500-SMA at 4.295%. The broader trend for yields is still up despite the short-term drop.

US 10-Year Yield Renko

20-Brick Renko Shows S&P 500 Pushing Higher

From a Renko perspective the S&P 500 is in a bullish setup right now. The Index is pushing higher at 7,500.0. It is well above the 50-SMA at 7,380.4 and the 500-SMA at 6,830.7.

The RSI is above 50 at 61.62. The Z-Score SMA is positive at 1.3. The Supertrend is green. The setup is clearly bullish. The Index does not have to do much climbing to continue the trend.

20-Brick Renko Shows S&P 500 Holding Above MAs

The Verdict

Current Trend Direction: Bullish

Bias: Positive

Support Levels: 7,240, 6,775, 6,310

Resistance Levels: 7,450, 8,150

Medium Term Path: The view for the S&P 500 is still higher. The Index is trading above both the short term 50-SMA and long term 500-SMA on the Renko. The Supertrend is positive. While consumer sentiment data was weak, the pullback in yields is helping the equities push higher. The Index is expected to continue its move higher in the medium term.