He S&P 500 extended its year-to-date recovery last week, despite the index falling 1% on Friday. The economists of Merrill They point out that many technical indicators point to more gains overall.
Many technicians believe that the next resistance is at 4325
“The last time there was a yield curve so deeply inverted and stocks rallied so aggressively from the October lows of 3,490 in the S&P 500, give or take, was in 1979, and then between 2006 and mid-2007, when the S&P rallied 25% from its lows.”
“If you move 25% away from the lows of 3,490, in current terms that moves the index to 4,350. That’s not the goal. It’s just structural technical factors that, if similar patterns to the last time we had a steeply inverted curve and stocks rallied so aggressively from their lows an average of 25%, they could drive the S&P 500 all the way to 4250.”
“Now if you look at the technical analysis, many technicians believe that the next resistance is at 4325. That’s not our specialty here at CIO, but with momentum taking us above 4100, many techs are looking for more bulls overall.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
