S&P 500 is above the last top and near all-time high levels. 3640 can be critical for up moves to continue. If the price breaks and holds above 3640, a new upside trend may form.
Today, Joe Biden will talk about the economy and Covid-19 plans. This may become the igniter of the next trend.
S&P 500 isn’t the only index that is reaching record levels. Asset purchases and new stimulus packages are given by almost all of the countries throughout the year. This increase in the money supply is fueling global markets. MSCI World Index is holding above the last top and testing its record levels.
AAII bull index is a survey result of the question: “ I feel that the direction of the stock market over the next 6 months will be”. Individual investor’s bullishness is over 50 level for the third time in 5 years with %55.84. Big pacific trade deal done by countries which include near %30 of global economy, Trump lost the Biden in US elections may means easing of China – US trade aggression, increase of vaccine hopes, all trigger this bullishness.
After the big March fall, the S&P 500 made a V shape recovery and past early 2020 levels. But the banking sector remained troubled for some time. If banks join the rest of the stocks, they may provide the fuel needed for a new uptrend.
The banking index is holding above the 270 level which denies further advances since March except for a 4-day move in June. If this level holds and 300 resistance breaks above we may see an upward move to continue to pre Covid levels.