S&P 500 Reaches Another Record High
As shown by the S&P 500 chart (US SPX 500 mini on FXOpen), the leading US stock index set its 45th record of the year, closing above 5800 on Friday. This marks the fifth consecutive week of growth, with the index up more than 22% since the start of the year.
According to Reuters, the bullish market sentiment is driven by the start of Q3 earnings season, with companies possibly issuing bolder forecasts due to the beginning of the Feds rate-cutting cycle.
What are the prospects for the index until the end of 2024?
A technical analysis of the daily S&P 500 chart (US SPX 500 mini on FXOpen) shows:
In 2024, price action has been contained within three relatively narrow ascending channels (shown in blue), where:
The first two channels remained valid for at least 80 candles, and the third has now reached 30 candles;
The channels have similar slopes and widths;
Drawing lines through the high of Channel 1, the high and low of Channel 2, and the low of Channel 3 forms a larger channel (shown in orange).
If the bullish sentiment persists, the S&P 500 (US SPX 500 mini on FXOpen) may continue to rise within the third blue channel towards the upper orange line.
However, several factors could significantly impact the market before the year's end: Labour market data, as well as Fed decisions and comments;
US presidential elections and budget approval;
Company earnings and forecasts that fall well below market expectations.
Goldman Sachs analysts predict that the S&P 500 could reach 6,000 by the end of 2024.
Read more: https://fxopen.com/blog/en/oa-s-p-500-reaches-another-record-high/
Text source: Forex Trading Blog
