SPX Continues Bullish Trend Post-PPI, Industrials Inch Toward Key Technical Level

Market Overview - The technology sector is currently leading the market, with Oracle's stock up 32% [1] - Overall, the technology sector is up over 1% in today's session, contributing to market strength [1][2] Technical Analysis - The market opened strong at 6550, approaching a major resistance level of 6555, but has seen some pullback [3] - Key support levels are identified at 6500 and 6485, with a previous resistance level at 6530 potentially acting as support [4] - The market is in a bullish trend, continuing to make new highs and higher lows, supported by positive PPI data [5][7] - The S&P 500 shows a decent technical setup, with the 20-day and 50-day moving averages being held [7][8] Industrial Sector Insights - The industrial sector is under observation due to a bearish cross on the MACD for the weekly chart, indicating potential testing of the 20-week moving average [11] - A significant portion (75%) of the decline in services is attributed to margin compression in machinery and transportation services, affecting major companies like Caterpillar and Boeing [12] Homebuilders and Mortgage Demand - Mortgage demand has spiked significantly, driven by decreasing rates, which could benefit homebuilders [13][14] - Anticipation of rate cuts may stimulate demand for new and existing homes, as well as renovations, positively impacting companies like Home Depot and Lowe's [15] - Despite a recent aggressive move to the downside, strong fundamental data could act as a catalyst for the homebuilding sector in the coming weeks [17]