The S&P 500 index made a new all-time high today, closing at 4839.81. This surpasses the prior high of 4818.62 from January 2022. We maintain our buy rating on (SPX) and expect that it will follow the Nasdaq 100 index (NDX) higher. After a 2-year pullback below prior highs, we believe the combination of a more accommodative Fed (no more rate hikes), cooling inflation and a strong jobs market will all be constructive tailwinds for the S&P 500. Earnings reporting accelerates next week, but so far, earnings have been well received in technology (Taiwan Semiconductor), financials (Travelers Group) and industrials (Fastenal).
From a technical perspective, it is also making a bullish month PMO (Price Momentum Oscillator) cross. The PMO is a very long term trend signal, which often precedes a major trend move higher.
Larry Tentarelli is the Chief Technical Strategist at Blue Chip Daily Trend Report.
Disclosure: We have a long position in the S&P 500 ETF (SPY).
