While gold rises to the demand for safe haven, the S&P 500 is also approaching new highlights. However, the technical strategist Jonathan Krinsky warns that weak seasonal factors can cause a short withdrawal. The index has been traded within a tight reach for months and although an outbreak is possible, the momentum fades.
Only 60% of the shares of S&P 500 are above their 50-day advancing averages, indicating that not all sectors participate in the rally. In addition, small CAP shares perform under hand, with the Russell 2000 ETF being the lowest relative level since July.
Investors are gently on shares
Despite the strength of the S&P 500, investor sentiment becomes careful. The last AAII research shows the bearish sentiment among individual investors at the highest level since the end of 2023, fed by concern about trade policy, inflation and the fading of expectations for interest rates.
The outsourcing of US stock funds reached $ 11 billion in January, causing strong inflow to turn over from December. Investors rotate in defensive sectors such as utilities and health care and at the same time exposure to fast -growing technical shares.
Market front views: A crossroads for gold and shares
Gold remains in a strong upward trend, with the demand for central bank and macro uncertainty that supports further profit. In the meantime, the S&P 500 is at a bending point – if it breaks out, the momentum can get higher, but seasonal weakness and limiting the width increases the risk of a withdrawal. Traders must look at important technical levels and sentiment shifts as the markets go in a critical period.