- In my daily analysis of the US indices, the S&P 500 is riding high, as we are now well above the 6000 level as I write this.
- The S&P 500 is more likely to be the big loser in any global rally in stocks in 2025.
That being said, I think there’s a lot of buzz that could have a big impact on what happens next. At the end of the day, the interest rate situation will of course be front and center, but I think right now we have a situation where America is the only place to put money to work for most traders, and the S&P 500 is of course the first place they look.
Technical Analysis
The technical analysis for this index is very strong, as we recently broke down to the 5900 level, only to form a small “double bottom” that could also be considered a “W pattern”. The market is currently looking at the 6100 level, which is an area that has previously held resistance. If we manage to break above there, the market will likely continue to see attempts to break above, perhaps looking for further moves to the upside. If that happens to us, then I think a lot of “FOMO trading” will come to light.
That being said, the market will probably have to pay close attention to the idea of what happens during Friday’s session, which is obviously the Non-Farm Payroll announcement, and this will of course have a big impact on what people think is going to happen. with the Federal Reserve. After all, the Federal Reserve has cut rates several times before, but inflation, or the US economy, didn’t care. It’s very possible that the US economy will start to boom again, and if that’s the case, the S&P 500 is the easiest way to play that if you’re overseas. It’s also a great way to play if you happen to be here in America.
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