Well I seriously doubted whether the S&P 500 would get anywhere near the 1000 mark this year but the price broke through this critical level earlier today. Indeed with around 10 minutes to go until the closing bell it looks like we are going to close the day above 1000.

This is an incredible turnaround in fortunes because back in March it was as low as 666, so it’s gone up by around 50% since then. The question is where does the S&P 500 go from here?

At the moment you would have to favour the upside because there are lots of positive signs. Regarding fundamentals we have seen some decent earnings reports in recent weeks and better than expected economic data, which has certainly helped, but there are also lots of technical indicators that are currently pointing to further gains.

For instance if you look at the current Marketclub signals for the S&P 500, you will see that their most recent signals on the daily, weekly and monthly charts were all buy signals so this is obviously a very positive sign. Furthermore going back to the daily chart you can see that the price is now comfortably above the 200 day EMA (exponential moving average) which currently stands at just under 940, and is now trending higher in actual fact.

It’s too early to get carried away because we are still over 500 points off the highs of recent years, which is 50% higher than today’s price, but we may start to slowly edge above 1000 in the coming months as signs emerge that the economy is starting to recover.

 

 

Filed under: Stocks

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