The S&P 500 is at an all time high as we head into the rest of July trading. Key for more upside is the index getting above 3000.Why is this level so important?
The S&P 500 has never been above 3000. So right now it is resistance. The S&P 500 has put on an impressive move just as I went on vacation last Thursday. Clearly, the outcome of President Trump's meeting with Chinese President Xi would dictate trading this week but the action started last week which was a big clue of more upside.
The S&P 500 was at 2913.78 on last Wednesday's close. Then it moved up to 2924.92, 2941.78, 2964.33, 2973.01 and 2995.82. Since the June 3 low, the S&P 500 is up 9.16% and 251.37 points. In the last 37 up moves since the fourth quarter of 2012, only six have been higher than 10%. So this move is getting to be one of the better ones as we begin Q2 earnings that start the week of July 15th.
87 companies have already given lower guidance for Q2 which is the second highest number of lower guides since Q2 of 2006. The impact then was the S&P 500 rose another 11.03% into year end. Currently, the S&P 500 is up 19.51% so could this repeat the second half of 2006 and the S&P 500 end up the year over 30% higher?