In February, in an article, named, “FxWirePro: S&P500 likely to reach new record high if support at 2530 holds”, available at https://www.econotimes.com/FxWirePro-SP500-likely-to-reach-new-record-high-if-support-at-2530-holds-1166341 we suggested that while we have turned bearish on European stocks as they look wobbly, that is not that case for North American stocks. Unlike the European bourses, the American benchmarks have the support of recently passed tax cuts and reforms, as well as an accelerating economy. In that piece, we suggested that as long as the support around 2530 holds, S&P500 is likely to hit a new record high and reach 2920 area.
And, in a follow-up call review, https://www.econotimes.com/FxWirePro-Call-Review-SP500-target-revised-higher-to-3120-1170838 we extended the 2920 target to 3120 area, as long as the above-mentioned support holds.
So far, S&P500 has not broken below the above-mentioned support and it has reached a new record high of 2915 area as anticipated. The index is currently trading at 2890 area and the latest calculations from our side strongly suggest that 3000 area as the next target for the index, though expect sellers to emerge around 2950 area.
We expect the upcoming third-quarter results to provide the necessary push to S&P500 as the U.S. economic growth is continuing its upward momentum. However, the move in the index would later focus onto U.S. mid-term election, which could decide the fate of U.S policies going ahead.
