Daily Market Overview - May 18, 2026

This Monday brings no high-impact data, which may create an impression of calm in the markets. However, in reality, such days can be deceptively dynamic. The lack of new information often leads investors to focus more on technical analysis and sentiment, which can result in unexpected price movements. Therefore, it is important to remain vigilant, especially in light of the recent inflation readings that continue to resonate in the markets.

Last week, the markets were dominated by inflation data from the USA, which contributed to increased volatility. Although this week appears to be calmer, investors will continue to analyze recent inflation influences, especially since expectations regarding interest rate changes remain stable at the current level of 3.50-3.75%. The market sentiment measuring greed, although slightly decreased, still indicates a risk appetite, which may affect investor behavior in the coming days.

The key takeaway for today is that a lack of high-impact data does not mean a lack of volatility. Traders should pay particular attention to technical indicators and any unexpected events that may affect the market. Monday could be a day where investor emotions are driven by sentiment rather than hard data, which often leads to sharp movements in the later hours of trading.

The current market sentiment remains at a level of greed, although there has been a slight decline from 66 to 63 points in the past week. This stability may suggest that investors are willing to take risks, albeit with caution. Ongoing tension around inflation expectations and stable forecasts regarding FED interest rates mean that markets may focus on seeking signals in technical and sentiment analyses.

The upcoming FOMC meeting, although still a month away, is slowly starting to attract attention. The current probability of keeping interest rates unchanged is almost certain, which may influence investors' strategies, especially in the context of stable market sentiment. Investors will be watching for any new information that could impact the future course of monetary policy.