S&P500: All-Time Highs In Sight?
If I was to tell you that the S&P500 would be within 1% of all time highs just 74 days after crashing 20% in October 2018 you would think I am mad! Well, I'm not (at least I think I'm not) and you better believe it that the S&P is ripping higher towards its all-time highs at 2,940.00. 64 days to crash 20% and 74 days to rise 23%, usually, a crash down takes less time than a grind higher due to the nature of the markets, pessimistic sellers sell during panic and optimistic buyers buy with confidence when the market is grinding slowly higher.
So why the surge higher? Thanks must be given to FED chair Jerome Powell. Halting rate hikes and ending Quantitative Tightening (QT) has given the US indexes an extra boost. Trump must also get codas, pumping the market on fake news does take some ego. Constant optimism of fake news relating to the US-China trade deal every time the market took a dip, brings a new notion to buy the dip. Concrete evidence is lacking when it comes to a deal being done, all we have is Trump and his administration stealing the headlines with “Talks are going well” or “Progress is being made” without any follow through to this.
Technically speaking, there is no resistance in the way of all time highs seen at 2940/2950, this could certainly be achieved within the next couple of weeks. A pullback to 2890 or 2875 before a run up towards 2940/2950 will certainly give us the best risk to reward for a setup. With only 33 points separating the current market price to new all-time highs, new all-time highs could be coming our way sooner than most expected.