To The Moon

US stocks have finally ended their longest decline cycle in more than 20 years.

The S&P 500 surging nearly 7% along with the other major indexes to post its best weekly result since November 2020.  The sharp turnaround came a week after the S&P 500 narrowly avoided entering a bear market, defined as a decline of 20% or more from a recent high.

In the past decade, the rebound strength of the S&P 500 ranks fourth in the rebound list, second only to the three sharp rises after the outbreak of the pandemic in 2020. 

Source from Head of Research@topdowncharts, the market tend to mark the Start to More Strength.  

The history shows what's going to happened most, unless it's 2008/1974.

Source: @topdowncharts

As of last Friday, $S&P 500(.SPX)$ ,$DJIA(.DJI)$ see postive gains, and $NASDAQ(.IXIC)$ see 1.65% Drop. $S&P/ASX 200(XJO.AU)$  and $Straits Times Index(STI.SI)$ also see 2~3% declines.

Sectors Weekly Peformance of S&P 500 Index:

Counsumer Cyclical, Technology, Energy are top gainers of last week.

Sectors Monthly Peformance of S&P 500 Index:

Energy, Utilities, and Basic Materials sectors are top gainers of May. Generaly, updated S&P 500 sectors returns. Some sectors are close to turning positive for the year which is good for the broad market in general.

The Top Weekly Gainers of S&P 500 are as Below:

The Top Monthly Gainers of S&P 500 are as Below:

$Dollar Tree(DLTR)$ ,$Ulta Salon Cosmetics & Fragrance(ULTA)$ ,$Dollar General(DG)$ ,$Ross(ROST)$ ,$DXC Technology Company(DXC)$ ,$Schlumberger(SLB)$ ,$Diamondback(FANG)$ ,$Best Buy(BBY)$ ,$AutoZone(AZO)$ ,$Generac(GNRC)$

Macro Factors To Focus：

GDP Slightly Worse: The government’s latest GDP figure released on Thursday showed that the economy contracted at an annual rate of 1.5%, instead of the initial estimate of a 1.4% contraction. Weaker private inventories and household investment triggered the downward revisio.

Fed’s Inflation Urgency: The latest U.S. FED meeting showed that policymakers were open to the possibility of raising interest rates by a half a percentage point at both of their next two meetings.

Inflation Moderation: Inflation moderated somewhat in April, although it remained close to the highest level in four decades. The Personal Consumption Expenditures Price Index rose at an annual rate of 6.3%, down from 6.6% in March; excluding often-volatile food and gas prices, April’s rate was 4.9%.

Earnings Scorecard: Companies in the S&P 500 recorded an average earnings gain of 9% over the same quarter a year earlier, according to FactSet data from the recently concluded earnings season. That result marked the slowest growth rate since the fourth quarter of 2020. Energy was the strongest among all 11 sectors, with earnings growth of 268%.

Other Market：

Crude Awakening: The price of U.S. crude oil $Light Crude Oil - main 2206(CLmain)$ continued to creep upward after briefly sinking below $100 per barrel on May 10. On Friday, oil was trading around $115 per barrel. Nevertheless, that’s still down from the $123 level that oil reached on March 8.

Gold Consumption Cooling: Last week, gold $Gold - main 2206(GCmain)$closed up for the third week in a row. The weak US economic data and FED's signal of relevant hawks dealt a heavy blow to the US dollar, thus pushing the gold price higher. However with the rise of gold prices in March and the recurrence of China's lock down, gold jewelry consumption was greatly impacted, and the overall consumption in the first quarter was pulled down.

Bitcoin faces the “darling dips of May”：Bitcoin to set a new record 9-week losing streak with BTC price down 22% in May. This would make May 2022 the second-worst May in Bitcoin’s history, data from on-chain monitoring resource Coinglass confirmed.

The Week Ahead: May 30th-JUN 3rd

This week, the market has faced the test of a series of heavy US data, including non-agricultural data. At the same time, a number of senior officials of the Federal Reserve will also make speeches. The geopolitical situation, global epidemic and other focus events also deserve continued attention.