The S&P 500 is now set to open up by 0.5% this morning. Together with a recent reversal trend tipped by positive consumer inflation information, this upsurge imposes on. The index continued its short-term momentum, hitting another local high as it gets closer to its all-time high set in February. That’s why investors are understandably giddy at the recent Consumer Price Index (CPI) numbers. This resulted in a much anticipated month-over-month increase of only 0.1%, coming in under expectations.
Tuesday was no ordinary day, as the S&P 500 climbed up 0.55% to top 6,000 for the first time in history. There is a growing sense of investor optimism. They expect quite a bit from the current U.S.-China trade negotiations and their effect on worldwide economic growth. As such, the index is now testing its January-February trading range.
Market Performance and Investor Sentiment
Second, the S&P 500 futures contract has been impressive in its own right for stretching its short-term uptrend. Following the CPI release, futures blasted through the 6,050 threshold. All in all, this notable movement signifies that market participants are getting ready for further advances. Expectations are running high for the index which is seeking to return to its all-time high of 22,222.61 set on February 19. This optimistic sentiment has created incredibly bullish liquidity among investors.
This projected increase follows an upward trend as investors seek to benefit from promising economic signals. The recent CPI report has cooled fears of an inflation spike. Under this new paradigm, one can be more optimistic about the future course of monetary policy. There is now solid support for the S&P 500 at the 5,950 mark. Now, market participants can move prices up with conviction on this firm base.
Key Levels and Future Projections
the S&P 500 have been on a soaring upward trajectory. It still needs to get above key resistance levels to continue surging. So we don’t know what the exact resistance points would be for the S&P 500. The Nasdaq has identified its area of resistance as being between 22,000 and 22,200. These levels will be key areas of focus for investors as they look at the index’s ability to break past all-time highs.
Analysts suggest that reaching the February all-time high may not only depend on favorable economic data but on geopolitical developments, particularly regarding the U.S.-China trade relationship. Increased confidence in a successful resolution would have even more upward driving power on the market.