$DIA $SPY $QQQ $RUTX $VXX
It is the end of May and the S&P 500 cracked and broke through the Key overhead resistance at 3,000 and held, this after a month of sideways trading and consolidation.
Now Summer is here an my prediction should make investors feel safer after this unpopular rally drove prices higher off the 23 March lows in a terrific V shaped recovery.
Today, I am raising my target on the S&P 500 to 3,250 by the end of August as the technical outlook for the US major stock market indexes is Very Bullish across the board.
This next Bull market recovery leg is bolstered by enormous liquidity, which came in response to the Medical Malpractice chaos in late March, and for a strong upturn in GDP by September, that will drive the S&P 500 back toward 3,370. The massive stimulus provided by the Fed and the government outpaces every post WWII cycle, and Chairman Powell is standing by to do “what is necessary” to drive the US economy North from here. It has already begun.
Note: The market has maintained a Bullish trajectory throughout most of May which had many indices, sectors, and stocks retracing back above their March and April Key resistance zones.
Some stronger groups have even rallied back towards YTD highs to February levels.
The Pullback Long candidates are all stocks in strong uptrend that are starting to show a consolidation or mild pullback.
Often these stocks will be defended around a rising short-term MAs like the 10-Day, 20-Day, or 50-Day, then onward and upward.
Friday, the major US stock market indexes finished at: DJIA -17.53 to 25383.11, NAS Comp +120.88 at 9489.89, S&P 500 +14.58 at 3044.18
Volume: trade on the NYSE came in at 2.4-B/shares exchanged.
- NAS Comp +5.8% YTD
- S&P 500 -5.8% YTD
- DJIA-11.1% YTD
- Russell 2000 -16.5% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes for the week and month ended 29 May 2020 is Very Bullish across the board.
Looking Ahead: Investors will receive the ISM Manufacturing Index for May and Construction Spending for April Monday.
Have a healthy weekend, Keep the Faith!