After three consecutive winning days, the S&P 500 looks primed to break through the 5500 level — and here’s why:
Momentum is Strong: Technicals show clear upside momentum, with RSI and MACD both signaling further strength. The path of least resistance is up.
Earnings Season Tailwind: Corporate earnings have consistently beaten expectations. Strong fundamentals support higher valuations, giving the rally real substance.
Soft Landing Optimism: Inflation is cooling without a deep recession. With the Fed potentially pausing or even cutting rates later this year, liquidity could flood back into equities.
Positioning is Still Cautious: Many funds remain underweight equities. If the rally continues, FOMO (fear of missing out) could drive a surge of new buying.
If sentiment and data hold, smashing through 5500 might not just be possible — it could happen faster than most expect.
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