The S&P 500 index has been on a remarkable rise year on year even after the past corrections historically. As the index is approaching new high, this makes many wonder: Is it the right time to buy into the market?
The S&P 500 is reaching new highs thanks to strong economic growth, good corporate earnings, and easy money policies. Important signs like consumer spending, job numbers, and business investment are all looking good. This makes investors feel positive about the market.
Key Economic Drivers
The economy's strong performance is key to the stock market's rise. The August report suggested that consumer spending, a big part of the economy, is still strong. People are spending money as the job market is also doing well.
Technical Analysis
Following the market correction in August 2024, the S&P 500 established strong technical support, and this is follow by a second support in September as shown in the diagram above. Both the Stochastic and macd technical indicators are gaining strength and momentum, if it is able to breakout of the previous high, there is a potential of another 500 points of upside.
What do you think?
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