Bulls relaxed in their territory - no bears in sight...yet!

S&P 500 Market Minutes for today, Mon 5/21:

MARKET ACTION TODAY - THE WHAT:

The S&P 500 index opened the trading week on a positive note, up 12.98 points - riding on the back of easing U.S. and China trade tensions. Led by Industrials and Telecommunication Services sectors, today’s gains were broad based with all the11 primary sectors closing with gains. Maintaining the optimism throughout the session and trading within a narrow range (2,725.70 - 2,739.19), the index closed the trading session up by 20.04 points at 2,733.01, gaining 0.74%.

MARKET ACTION TODAY - THE HOW AND WHY:

To reduce its trade deficits with the U.S., the Chinese government agreed to increase their purchases of American goods and services including agricultural and energy products. In return, the U.S. postponed the implementation of tariffs on Chinese goods valuing up to $150 billion. Benefiting from the easing of trade tensions between U.S. and China, Industrial stocks received a major boost, gaining 1.54% led by a 3.61% in Boeing Co.

Telecommunication Services and Technology sectors with Chinese clients were also amongst the top gainers of the day, up 1.49% and 0.84% respectively, which were further boosted after Micron Technology Inc., raised its profit and revenue guidance for the third quarter. Energy stocks also traded higher supported by high oil prices. The 10-year Treasury bond yield inched lower supporting the day’s gains, settling at 3.06% albeit staying above the psychologically important 3% mark. 

While today’s rally was broad based driven by easing trade concerns, stocks of Steel companies fell on the assumption that the previously announced steel import tariffs by the Trump administration will be put on hold or cancelled. Steel stocks had been rallying after the announcement of a 25% tariff on steel imports. 

S&P 500 OUTLOOK AND TRADING PLAN FOR TOMORROW - TUE, 05/22:

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