S&P 500 (SPX) Poised for New Record Highs
Of the major U.S. benchmark stock indexes, only the Nasdaq Composite has reached new all-time high territory thus far. On Wednesday, the Nasdaq Composite hit an intraday high of 8139. This was just slightly higher than the 8133 high of late August 2018. The Dow Jones Industrial Average still has a short way to go before it, too, can claim a new record. And the small-cap Russell 2000 is not even in the ballpark. As for the S&P 500 (SPX), it’s right at the cusp and poised for new record highs.
S&P 500 Recovers Swiftly from Q4 2018 Lows
Year to date, the S&P 500 has risen on a virtually uninterrupted path by more than 16%. From the depths of late December’s lows to nearly a new all-time high, SPX has swiftly erased almost all the losses of Q4 2018. As of Wednesday’s market close at 2927.25, the S&P 500 is now only around 13 points below its September 2940.91 record high.
What May Happen Next for the S&P 500?
This very short distance to record high territory could potentially be closed this week. In fact, earnings beats by Microsoft (MSFT) and Facebook (FB) in Wednesday’s after hours could be enough to help close the gap on Thursday. And on the strength of the current earnings season, the S&P 500 is poised to blow way past previous records. It may not have seemed likely at the end of last year, but the index could very well reach the 3000s in short order.
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Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Senior Market Analyst at The Technicals
A veteran global macro trader/analyst, Bart focuses on major market moves in currencies, commodities, fixed income, and global equity indexes. Bart stresses inter-market correlations and dynamics while keeping a close eye on risk. He has published countless market analysis pieces and has been a guest expert for a variety of major financial media. Contact Bart