| | | | | Hey there,
This past week felt like a market deep breath.
After a relentless push higher through April and early May, SPY finally hit the brakes. The ETF closed the week at $594.29, barely budging after five trading sessions marked by tight ranges, mixed economic data, and a tug-of-war between tech strength and small-cap weakness.
But don’t mistake the slowdown for silence — there were key signals for traders who were paying attention.
🧠 10 Lessons from May 12–16
1. SPY Can Stall Without Crashing.
Despite all-time highs in sight, SPY traded flat all week — opening Monday at $594.20 and closing Friday at $594.29. This was a classic digestion phase.
2. Rotation Is Real — and Subtle.
While SPY stayed flat, we saw money move into value names and away from extended tech stocks. That’s not bearish… it’s smart money repositioning.
3. Small Caps Showed Cracks.
IWM (Russell 2000 ETF) underperformed, dropping over 1.5% for the week. This divergence reminded us to watch risk sentiment closely.
4. CPI Still Moves Markets.
Wednesday’s Consumer Price Index (CPI) print came in softer than expected, sparking a one-day rally. But the move faded fast — a reminder that reaction matters more than the news itself.
5. Time of Day Still Rules the Tape.
Most of the meaningful action happened between 9:30 and 11:00am ET. Midday and late afternoon sessions offered more noise than opportunity.
6. SPY $590 Was Key Support.
Buyers defended the $590–$592 zone several times this week. Until that level breaks, bulls have a technical edge.
7. The VIX Doesn’t Tell the Whole Story.
Volatility stayed low, with the VIX below 13 — but intraday chop still trapped plenty of traders. Don’t confuse low VIX with easy trading.
8. Earnings Season Isn’t Over.
Retail names like WMT and HD reported this week. Their cautious outlooks hinted at shifting consumer behavior — and added headwinds to discretionary stocks.
9. The Bond Market Isn’t Sleeping.
Treasury yields bounced midweek, briefly pressuring growth stocks. Keep watching TLT and the 10-year — they’re still key drivers.
10. “Wait and See” Is a Valid Strategy.
Many traders stayed on the sidelines this week — and that was wise. When the market doesn’t offer clear setups, protecting capital is a win. 📬 Want insights like these — plus 5 trade-ready stocks — every Monday afternoon?
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Until next week,
—The DTI Team | | | | | |
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