The stock market continued rallying higher last week as the Fed raised interest rates, inline with expectations, by 0.25%. An inflation report which showed a continued reduction was cheered by investors and bolstered confidence that inflation is headed in the right direction. July was a month full of important economic reports and it seems that the stock market has made it through unscathed with investor sentiment growing more positive.
At the current S&P 500 level of around 4600 it seems highly possible that the market will regain its previous highs of 4818 by the end of the year. There is a resistance level around 4634, which is the last major technical resistance between here and 4818. It could be a price point where the stock market stumbles and drops in the short term. Historically, August through October is also a weak period for stock market gains and could slow down the rally. It’s a matter of speculation whether it will be a straight shot higher and at a quicker pace, or whether there will be ups and downs on the road to 4818.
Photograph by: Arisa Chattasa on Unsplash
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