New Record Highs For The S&P 500

Concern about the weekend reports on the Federal Reserve’s plans to taper back its quantitative easing program were eclipsed by a better-than-expected Retail Sales report on Monday. After the Commerce Department’s Census Bureau reported that retail sales for April advanced by 0.1 percent, compared with economists’ expectations of a 0.3 percent decline, the bulls were back to retain their turf.

The Dow Jones Industrial Average (DIA) lost 26 points to finish Monday’s trading session at 15,091 for a 0.18 percent decline. The S&P 500 (SPY) climbed a nearly-imperceptible seven one-hundredths of a single point (not a percentage) to set a new record-high close at 1,633.77 from Friday’s 1,633.70. The S&P also reached a new intraday record high of 1,636.

The Nasdaq 100 (QQQ) rose 0.04 percent to 2,982. The Russell 2000 (IWM) slipped 0.14 percent from Friday’s record high close to end the day at 973.

In other major markets, oil (USO) declined 0.82 percent to close at $33.86.

On London’s ICE Futures Europe Exchange, June futures for Brent crude oil declined by $1.15 (1.11 percent) to $102.50/bbl. (BNO, USO).

June gold futures declined by $6.00 (0.42 percent) to $1,430.60 per ounce (GLD).

Transports slipped into reverse on Monday, with the Dow Jones Transportation Index (NYSEARCA:IYT) declining 0.51 percent.

European stocks had a tough session on Monday, as investors remained concerned about Wednesday’s release of GDP data on a number of Eurozone countries, including Germany. The Euro STOXX 50 Index finished Monday’s trading session with a 0.28 percent decline to 2,777 – remaining above its 50-day moving average of 2,673.

Japanese stocks continued to climb higher on Monday after the G-7 finance ministers, at their weekend meeting in Britain, signaled that they had no objection to further weakening of the yen. A weaker yen results in more-competitive prices for Japanese exports in foreign markets (FXY). During Monday’s trading session in Tokyo, the yen sank as low as 102.11 per dollar. The Nikkei 225 Stock Average jumped 1.20 percent to 14,782 (EWJ).

In China, stocks declined after a report from the National Bureau of Statistics revealed that fixed-asset investment during the first quarter of the year advanced by 20.6 percent, falling short of economists’ expectations of a 20.9 percent increase. The Shanghai Composite Index declined 0.22 percent to 2,241 (FXI). Hong Kong’s Hang Seng Index sank 1.42 percent to 22,989 (EWH).

Technical indicators reveal that the S&P 500 remains far above its 50-day moving average of 1,572 after closing at 1,633.77 – motivating bears to hope that we are watching the formation of a head-and-shoulders pattern, which would signal a decline. Its Relative Strength Index ticked upward from 67.36 to 67.37 – approaching the threshold level of 70. Most investors consider a Relative Strength Index above 70 as an “overbought” signal. The MACD remains above the signal line, suggesting the likelihood of a further advance.

For the day, half of the sectors finished in negative territory. The biggest losers were the materials and utility sectors. The healthcare sector had the best day of the group, with a 0.83 percent advance.

Consumer Discretionary (XLY): +0.02%

Technology: (XLK): -0.25%

Industrials (XLI): -0.39%

Materials: (XLB): -0.71%

Energy (XLE): -0.01%

Financials: (XLF): +0.31%

Utilities (XLU): -0.53%

Health Care: (XLV): +0.83%

Consumer Staples (XLP): +0.17%

Bottom line: Many stock sectors finished Monday’s trading session in negative territory, despite the fact that the S&P 500 set a new record intraday high and barely beat Friday’s record high close.

Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector's Disclaimer, Terms of Use, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.