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Market Rally Picks Up Steam

Market Rally Picks Up Steam

June 20, 2023

The stock market continued its impressive rally last week as the Federal Reserve took a break from raising interest rates after 15 straight months of hikes. Cooling inflation reports further bolstered investors to participate in the rally. So, what comes next?

Some major economic hurdles have been surpassed with a pause on interest rate hikes along with the stock market breaking through key resistance levels, which makes it a good time to look ahead at what may occur in the next phase of the market rally. Currently at 4409 the S&P 500 has come a long way off the mid-October lows of 3491 but there’s still a tough climb to the previous highs of 4818. Last week the S&P successfully broke through an important resistance level at 4325 which I believe was also an important psychological event that will bring more investors into the stock market. The volatility, speculative frenzies, fear, and uncertainties that began with the pandemic are evaporating and being replaced with excitement for the future. The stock market will benefit from this excitement and could likely get back to the previous highs before the end of the year.

As the market advances, there will be ups and downs. The resistance level of 4325 will now become a support level which the market may drop back to over the coming weeks or months. Any pullback of this kind is a good opportunity to invest excess cash and grow your portfolio.

Photograph by: Claud Richmond  on Unsplash´╗┐