While the S&P 500 closed the month of April with its biggest gain in over 30 years, the market is now stalling at resistance near 4,000. In the Nasdaq 100, heavy selling in Amazon and Microsoft dragged the index lower. Wall Street could be even more active on Wednesday.
The S&P 500 is trading cautiously after failing to break through key resistance near the 4,000 handle, defined by the 38.2% Fibonacci retracement of the selloff from 2022. The S&P index has since dropped modestly, but this drop did not create major technical damage, and prices are likely to resume ascent soon.
The S&P 500 closed off about 15 points Monday after a day of resistance in the morning. The Russell 2000 was the big winner for the day, up 1.2%. However, the S&P remains under a bearish bias.
In the short term, the stock market may be a little uncertain after the midterm elections. The election results will likely help equities, but lower bond yields could hamper gains in the S&P 500.