S&P 500 Hit An All-Time High, Now What

Venerable 21, 2022

This Mass meeting May Entirely Be Getting Started

The S&P 500 hit an each-fourth dimension high this week and today the interview becomes what now? The call up to today's level was motivated in large past the economic rebound and government stimulus, what could there possibly embody to keep it going? Spell the stimulus is running out, and in that location is really no reason to think we'll get another one, the economic data is very positive. Sure, unemployment is still high simply even those numbers are coming down .

The first datum I want to mention is the KC Fed's Labor Market Conditions Index. The level of bodily function is still low but momentum within the sector hit an all-time high. Non just any all-time either merely one thus Former Armed Forces above what we've seen in the past traders should expect robust hiring figures if not jobless claims declines in the coming weeks. The future information point I want to talking about is the Index of Starring Indicators. The Index of Leading Indicators moderated from the previous calendar month but, at 1.4%, is noneffervescent far above levels seen in the TWO Long time before the general. That agency on that point is a big uptick in economic activity underway right today.

Likewise, the Philly Fed MBOS, a gauge of manufacturing activity, moderated from the previous month but remains at levels not seen in age. No reason to think this economic recovery is not still quite strong and even accelerating. The risk, of course, is another round of government shutdowns but it's extremely unconvincing that wish happen once again.

Looking the chart, the SPX has been struggling to definitively break above the previous high. While new highs have been set, electrical resistance at the previous highs consume kept prices in check. Now, with the earnings season forthcoming to an end, there is a chance the index could pull back to support. If information technology were to answer that a drop to 3,230 operating theater bring dow is possible. Connected the other hand, with the data in support of so much a strong rebound and the 2Q earnings season so such better than likely it's possible the index could actuate higher. One possibly accelerator is the 2nd quarter GDP revision due out next week, another is the Personal Income and Spending information due on Friday.

If the SPX breaks to a halal new high and confirms support the odds of a powerful rally forming are strong. Just founded on the magnitude and strength of the COVID sell off and rebound, this market could rise 1,000 points over the next 6 to 12 months. Howler.