S&P 500 (SPY) Tests 4100 As Commodity Markets Rally

Traders Remain Upbeat

The S&P 500 keeps trying to settle above the 4100 mark as the robust bounce continues.

The S&P 500 encountered resistance at 4115 and retreated in the direction of the 4100 level, although there are no indications of a significant sell-off that may have been brought on by profit-taking after the robust surge.

Stock traders continue to be upbeat despite the markets pricing in an over 90% likelihood of a 75 basis point rate rise at the upcoming Fed meeting. Today's Treasury rates remain largely steady, but the weakened dollar gives equities more support.

The S&P 500 is attempting to regain ground over the 4100 mark. If this effort is successful, the price will move on to the next resistance level, which is around 4115, which is close to daily highs. The S&P 500 will be pushed toward the 4150 barrier level if it moves over 4115. The S&P 500 will go toward the barrier at 4180 if it rises over this point.

A move below the 4100 level on the support side will allow for a test of the support at 4080. The S&P 500 will go toward the next support at the 50 EMA at 4050 if it is able to fall back below this level, which it may do.

Stocks Affected by Commodities Rally

At the start of the week, commodities-related equities are well supported by a surge in the commodity markets.

In today's trade, silver mining companies including First Majestic Silver, Endeavour Silver, and Pan American Silver are up 5–7%.

Exxon Mobil and Schlumberger are two significant oil-related equities that are up while WTI crude is up more than 2%.

The majority of the top tech stocks are trading higher today. With a stock gain of more than 3% and rumors of robust pre-order interest for the iPhone 14, Apple is clearly in the lead.

From a broad perspective, all market categories are rising upward during the present uptrend. Trading participants' appetite for risk is still high despite the S&P 500's gain of approximately 5% in just four trading sessions.

Traders must keep an eye on currency market movements since the S&P 500 is receiving a lot of support from the weak dollar at the moment. Stocks will have a decent possibility of ending the trading session close to daily highs if the U.S. Dollar Index is able to settle below the 108 mark.