Market technical assessment: bullish intermediate-term

What happened: The S&P 500 and other major indices rose for the eighth consecutive week, with the Russell 2000 and S&P Small Cap 600 leading the gains. Despite initial volatility due to inflation reports and the largest IPO in history, stocks rallied on news of a potential Iran peace deal, pushing oil prices down. The market witnessed a rare intraday selloff on Tuesday, but semiconductor ETFs continued to rise. May was a strong month for stocks, particularly in the technology sector, with the S&P 500 up 5.2% and the Nasdaq up 8.4%. However, the market took a beating on Friday due to inflation fears and rising Treasury bond yields.

Market impact: The bullish trend benefited small-cap and technology stocks, with the Russell 2000 and Nasdaq 100 leading the gains. Semiconductor stocks remained resilient despite broader market volatility. However, market breadth weakened, with secondary indices, sectors, and individual stocks underperforming. The mega-cap indices continued their advance, but cracks appeared elsewhere in the market.

What to watch next: Investors should monitor the June 14-15 Federal Open Market Committee (FOMC) meeting for clues about the Fed's interest rate policy in response to inflation. Additionally, earnings season will provide insights into corporate performance, with notable reports expected from companies like Netflix (NFLX) on April 20 and Tesla (TSLA) on April 26. Technical levels, such as the 50-day moving average, will also be crucial to watch for potential trend changes.