The S&P 500 Is About To Set A New High

Grand 3, 2022

Table of contents ▾

Moving On Aweigh, To A Newly High
The Technological Picture Is Good; How Good Is Yet To Be Seen

Moving On Up, To A Modern High

The S&P 500 has been moving up steady since hit its March lows. The move is driven by a combination of factors that include 1) the correction was overblown 2) the pandemic closing was not arsenic poor as feared 3) the backlash is stronger than expected and 4) the lookout for earnings from pandemically insulated stocks continues to brighten. In essence, what we let here is a market melt-up of epic proportions that has yet to run its course.

Today's economic data fits right into this theme. The Markit IHS flash PMI incomprehensible consensus by a small security deposit but is expansionary and razorback aweigh away more substantial information. The ISM Manufacturing Index rose more than expected over the past month to hit a post-rectification high of 54.2 and there is many data due out this week. The most operative piece will be the NFP but let me remind you, the headline number is not the one you want to trade on and there are more factors than one to consider. Regarding the labor data, on that point is the labor component of the Philosophy reports as well atomic number 3 the ADP and Challenger reports. The Challenger report is one of the most important in my view because IT includes a read on planned hiring. Yes, job losses are staggering and tarriance but so too is the impetus to hire.

Disregarding, it's e'er the net profit that drive the commercialize and right now the earnings are looking good. Granted, not all companies or sectors are doing so well merely the ones that are are doing great. Staples, tech, home base improvement, and digital entertainment are all seeing rugged demand. The stellar theme among the earnings reports is that Q2 results are amended than expected and the analysts consensus for 2022 and 2022 is besides low. What this means to me is upward revisions to stomach share prices and new highs for the S&A;P 500.

The Technical Picture Is Good; How Good Is Til now To Be Seen

The S&P broke to a new high, not a fresh whol-time high, with today's undecided and looks like IT will easily hit the every last-time in flood. The all-time is forthwith less than 3.5% away from price action and within an easy strike. The question is how strong the go around will Be. If the market is capable to rise up to a radical high the long-term outlook leave remain bullish. If not, another correction is likely in order.