On Tuesday, the index ended the trading day with slightly lower results. During the session, stocks encountered difficulty in keeping the big rally in motion. As a result, the S&P 500 closed at 3,120.18, ending its five-day run. 

Sectors such as health-Care, information tech, real estate and financials concluded with higher results. However, the energy sector experienced a decline with crude oil futures settling with a drop exceeding 3%.

In this regard, according to CNBC, the managing member at Newton Advisors, Mark Newton, stated that the index is continuing to seek a path in order to partially move up. This was in spite of the negative market breadth and indications of overbought circumstances in the near term. He further stated that unless there is more indications of declination when it comes to market trends, hanging onto the current uptrend is definitely good for the bulls.

What seemed to drive the market is the trade deal between China and the US. Having been involved in a trade conflict for over a year, the two countries have managed to interfere with the global economy and corporate earnings expectations. Nevertheless, in the past month, anticipation for the two largest economies to arrive at a trade agreement has increased, following U.S President Donald Trump’s statement regarding phase one of the agreement expected to be approved at some point in November.

By: Cyril Latrice Cajanding