Will S&P 500 reach all-time high?

Will S&P 500 reach all-time high?

2020-08-10 • Updated

It has been climbing up for the 9th day in a row. Look for trade ideas.

Why is it important?

Let’s start with the fundamentals. It’s a common fact that the S&P 500 is a so called benchmark of the US economy. Thus, when the US economy gets under threat, the S&P 500 tends to dip down. As you might know, US-China trade talks are scheduled for this week. This agreement is widely watched by all the market participants, as it will impact the overall sentiment.

What happened?

Today Bloomberg reported that China imposed sanctions on US officials in reply to the US actions over Hong Kong's leader Carrie Lam. It definitely adds more pressure on the Sino-Americans tensions. However, investors shrugged off that news and continue buying the S&P 500. Maybe this year is so filled with negative news that people’s reaction has weakened.

Another reason, which may weigh on the US economy, is disputes between Democrats and Republicans over the fiscal stimulus package. The US president Donald Trump made executive orders to speed up their agreement. However, discussions continue. And, again, it seems it doesn’t bother investors so much.

Wells Fargo Securities thoughts on S&P

According to Chris Harvey, head of equity strategy at Wells Fargo Securities, one thing still can stop the S&P 500’s rally. It is negative interest rates, which officials may impose again. Wells Fargo Securities set the price target at 3 388 for the S&P 500. Harvey claimed that the stock index may reach this level before further contraction as elections in November may add headwinds.

Some analysts believe that the Federal Reserve is interested in depreciating the US dollar. Therefore, multinational corporations will get a boost as people will try to escape from the currency, which is losing its value every day. So, the S&P 500 should gain on that.

Technical tips

The S&P 500 is approaching the all-time high at 3 390. All the moving averages are in descending order, that indicates a really strong uptrend. If the price goes above 3 390, it will surge to the key psychological mark at 3 500. Nevertheless, the move below the low of August 7 at 3 325 may push the stock index lower to the low of August 4 at 3 270. Follow further news!

S&P500H4.png

LOG IN

Similar

Oil: Russia-Ukraine Crisis Could Boost Oil Prices
Oil: Russia-Ukraine Crisis Could Boost Oil Prices

Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

XBRUSD: Prepares to Correct Intraday Rally
XBRUSD: Prepares to Correct Intraday Rally

Bearish Scenario: Sales below 80.00 with TP1: 79.34, TP2: 78.94, TP3: 78.55, and 78.00 Bullish Scenario: Buys above 78.00 (wait for a retracement to the zone) with TP: 79.34 TP2: 80.00, and TP3: 81.00

Latest news

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera