The S&P 500 index has had an incredible run from the low in late October to a retest of the July high around 4600.
Will the SPX continue its run to a new all-time high over 4800 in the new year?
Before we can achieve 5000 or even 4800 on the S&P 500, we first have to push above the summer highs around 4600. The challenge for stocks is that so many of them have already experienced strong uptrends off the October low, leaving many in overextended positions in early December. The bull case for stocks has to include leading growth stocks powering even higher, representing additional buyers coming in and willing to pay even more for stocks that have already reached elevated valuations.
In today’s video, we’ll talk about the recent overbought conditions experienced by our major benchmarks and show what previous cycles can tell us about the likelihood for a pullback in the coming weeks. We’ll also break down the charts of HD, KEY, MMM, and MSFT, with a focus on momentum characteristics and support and resistance levels.
- What’s the likelihood for the SPY and QQQ to follow a strong November with an even stronger December? I’ve included a chart of SPX below today’s video.
- How do seasonal trends in the fourth quarter align with what we’ve seen from stocks off the October low?
- Why is it important for stocks outside of the FAANG sectors to show additional strength into the new year?
[VIDEO] Analyzing the Stock Market Indices and Key Stocks
S&P 500 Index Chart
Twitter: @DKellerCMT
The author may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
