Market Digest: MKL, ADSK, AZO, CLX, HPQ, TECH, LYB

Argus

•

May 30, 2025

Summary

The S&P 500 (SPX) has come roaring back, with a gain exceeding 20% from the 4/8/25 low. The market's problems began sooner, with stocks working lower from February all-time highs in a steady cascade through mid-March. The SPX first broke below the 50-day simple moving average (SMA) on 2/21/50 and the 200-day on 3/7/25. From the interim 3/13/25 low at 5,521, stocks attempted to rally and on 3/25/25 enjoyed a brief two-day respite back above the 200-day in the 5,770s. The index went pretty much straight down from there, bottoming at 4,983 on 4/8/25. Along the way, the 50-day simple moving average at around 5,840 was preparing its death-cross dive down through the 200-day SMA; the death cross occurred on 4/14/25. Just when it seemed darkest, Washington performed some policy reversals and stocks began to turn up. The S&P 500 first flashed to the 5,440s (4/9/25) and tumbled to the 5,160s (4/21/25) before it began its real climb. On 4/30/25, the index came up through its 50-day SMA in the 5,590s and surpassed its 20-day in the 5,760s. The index made its recovery high less than 40 points below 6,000 on 5/19/25 and may be consolidating in the 5,800-5,900 range, With the index comfortably above its 200-day trendline (currently around 5,782) and 50-day trendline (