Stock markets have seen one of the strongest rallies ever in the last two year, with S&P 500 and the Nasdaq index making new record highs continuously. However, they have stagnated in the last several days, but this seems more of a breathing period before resuming the bullish trend. So, we decided to open a buy S&P 500 signal late last week, which is well in profit despite the pullback.

S&P 500 Daily Chart – The 20 SMA Holding As Support

It seems like the trading week is off to a strong start, with the broad indices showing gains. The NASDAQ index is leading the way with a 1.5% increase, while the S&P index is up nearly 1%. In early trading, the S&P500 index is up 49.24 points, or 0.96%, reaching 5166.34, and the NASDAQ index is up 244.69 points, or 1.53%, reaching 16217.86.

One notable event today is the Nvidia Developers Conference, which could be contributing to the positive sentiment in the market. Nvidia shares are up $43, or 4.89%, trading at $921.03. Investors may be reacting positively to any announcements or developments from the conference, driving up Nvidia’s stock price.

DAX 30 H4 Chart – Consolidating Above MAs Before Resuming the Bullish Trend

Despite the German economy facing challenges and entering an official recession, the DAX , Germany’s index, continues to push to new all-time highs every week or so. This seemingly contradictory trend can be attributed to the fact that the earnings of DAX 40 companies are not solely dependent on the German economy. Many of these companies have diverse revenue streams from global operations, which may not be significantly impacted by the domestic economic conditions in Germany.

While the announcement from the German Bundesbank of a marginal dip in economic output and declining industrial orders and production are concerning indicators for the German economy, they may not necessarily have a direct correlation with the performance of DAX-listed companies. Investors in the DAX may be focusing more on global market trends, company-specific factors, and macroeconomic conditions beyond Germany’s borders when making investment decisions.

S&P 500 Live Chart