Traders wait for data, prepares for fallout

The S&P 500 is grinding against 6,000 and can’t break through. The index has surged 20% since April but is now stalled just 2.3% below its all-time high.

Traders are holding their breath ahead of the consumer price index (CPI) data due Wednesday and the Federal Reserve’s interest rate decision set for June 18. According to Asym 500, this double-whammy is all anyone is watching right now.

The calm has been unnatural. For seven straight sessions leading into Friday, the S&P 500 moved less than 0.6% in either direction — the quietest stretch since December. That’s not normal for a market this close to record highs. But despite solid earnings and no major signs of recession, everyone knows this silence might not last.

Traders wait for data, prep for fallout

Eric Diton, president and managing director of Wealth Alliance, says the rally can’t keep going unless there’s less uncertainty. “For US stocks to get back to all-time highs, we have to get rid of uncertainty, but most catalysts are elusive for now until the trade war chaos is resolved,” he said. His firm is already hedging against a possible drop.