The stock market this weekend got past the second of two big hurdles strategists said stood in the way of a solid year-end rally— trade and the Fed. Now, they say while the rally could continue, a big chunk of that run-up may have already happened.
After a positive trade meeting between the leaders this weekend, the S&P 500 rocketed higher Monday morning along with other stock indices. But by mid morning, the S&P was giving back some of those gains, after hitting 2,800 and was just below 2,785 in afternoon trading.
The S&P 500 ripped nearly 5 percent higher last week, in its best week since 2011.
"Part of the trade rally happened on Friday. 2,800 has been a level of resistance," said Peter Boockvar, chief investment officer at Bleakley Advisory Group. "We still need to see the details."
Traders said Monday's trading could be key to determining whether stocks are setting up to go higher into year end. One stock they continue to watch as a sentiment indicator is Apple. Apple was up about 2.2 percent, holding just above $182 per share and off its high of $184.68.
"I don't think today's highs will be the highs of December," said Scott Redler, partner with T3Live.com. "What would dampen sentiment would be if they take Apple red instead of letting it bounce towards $190, which is where I think it goes this week."
Redler said the market is in an uptrend with the two big headwinds removed.
Stocks also surged last week after some fears about an aggressive Fed faded when Fed Chairman Jerome Powell Wednesday said the Fed is close to the neutral rate.
"There's an upside bias but be careful of going all in today," said Redler.
Powell had been expected to testify this week before Congress, but his appearance was postponed due to the national day of mourning for President George H.W. Bush.