Equities entered the week steady as traders look ahead to tomorrow's earnings results from Nvidia, which has been a large part of the S&P 500's earnings. The stock has had a historical advance, supported by the boom in artificial intelligence. Investors are also keeping an eye on commodities as gold, copper, and silver continue their advances. It is leading many to pause for concern that inflation will keep easing and the Fed will initiate rate cuts in 2024.

After last week's advance, the S&P 500 is back near all-time highs. After the recent pullback, many traders are noting the potential double top formation on the index, and we will be watching to see if a strong report out of Nvidia can help the index break through resistance or take another pause. This resistance level, coupled with other medium-term uptrend factors, is crucial for sustaining momentum.

This week is light on economic data, however we will see a flood of Fed speak. We will be watching for inflections on language as Fed presidents have started to switch from rate cuts to being patient throughout the year. The key report will be on Wednesday with the Minutes of the Fed's May FOMC meeting.

Our Newton models indicate relative strength in Emerging and Foreign Developed markets. Utilities continue to lead, showing robust performance over the past few weeks while Materials and Cyclicals lag.