The S&P 500 barely moved on Wednesday, but it still closed at a new record. The Nasdaq and the Dow did the same. At the same time, crude oil prices and Treasury yields went down.
When we look at the chart, the rally is losing a little steam. The Relative Strength Index and the Percentage Price Oscillator both show weaker momentum. This slowdown often happens after the Memorial Day weekend, when summer trading becomes slower.
The market is still open for the summer, so the S&P 500 deserves a closer look. Wednesday’s gain was only +0.02%, which felt flat after Tuesday’s big jump. The low for the day stayed near Tuesday’s low and the close on May 14.
Technically, there are no clear signs of trouble yet. Many investors are waiting to see if the U.S.–Iran talks will move forward. Some of that optimism may already be priced into the market.
Right now, I’m watching the 13‑day exponential moving average (EMA) for support. If the index climbs higher, the next level to watch would be the 9‑day EMA, which has acted as a pull‑back point in the past.
Oil Price Drops
While stocks inch higher, crude oil is heading the opposite direction. Light crude broke below the lower edge of its triangle‑shaped consolidation. The 21‑day EMA has crossed under the 50‑day simple moving average, signaling more downside risk.
The blue dashed lines on the chart mark possible support levels. I will keep an eye on how price reacts around these points.
Bottom Line
Investors are watching headlines from Iran. If the talks stall, the market could turn quickly. We might see some profit‑taking at the end of the week, with stocks pulling back and oil potentially climbing back into its triangle range.
Thursday will bring key economic reports: the April PCE index, durable‑goods orders, and new‑home sales. Without progress on the U.S.–Iran deal, these numbers may not move the market much. In a world of rising inflation, Treasury yields remain an important signal.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always consider your personal situation and consult a professional before making investment decisions.
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