Why Is the Stock Market Doing So Well Lately?

The S&P 500 has been on a roll, hitting new highs. This isn't just luck; several factors are at play.

Key Drivers

• Federal Reserve: Expected to cut interest rates soon.
• Lower rates mean cheaper borrowing for companies.
• More spending by consumers.

• Good news for stocks.

• Tech Sector: Big names like Meta, Microsoft, Alphabet, Amazon, and Apple are set to report earnings.
• Investors are hopeful, especially with the buzz around AI.
• This excitement is pushing stocks higher.

Market Patterns

• Ascending Broadening Formation: Since May.
• Found support near the lower trendline and the 50-day moving average.
• Relative Strength Index shows bullish momentum.
• S&P 500 closed just below the upper Bollinger Band.
• Suggests gains might be limited before a pullback.

Key Levels to Watch

• Potential High: Could hit 7,075 (about 4% above Friday's close).
• Support Levels:
• First support: 6,600.
• Below that: 6,500 and 6,360.

Conclusion

Investors should keep an eye on these levels. The market's recent surge is exciting, but it's important to stay cautious. After all, what goes up must come down.