The Bull Market Continues: What Traders Should Do
The S&P 500 has broken out to new highs, but there are still risks to consider.
The S&P 500 has been on a tear in recent months, and it recently broke out to new all-time highs. This is a positive sign for the bull market, but there are still some risks to consider.
Of the 100 S&P 500 companies that have reported earnings so far, 78 have beaten analyst expectations, while only 12 have missed. This is a strong start to the earnings season, and it suggests that corporate America is still in good shape.
“The S&P 500 earnings season is off to a strong start, and corporate credit has held up well,” said Michael Hewson, chief market analyst at CMC Markets. “This is a positive sign for the economy, and it suggests that corporate America is still in good shape.”
The Russell 2000 index, which tracks the performance of small-cap stocks, also had a strong day on Wednesday. The index closed up 1.3%, and it has now broken free of the congestion that it has been trading in for the past few weeks.
“The Russell 2000 index has finally broken free of the congestion that it has been trading in for the past few weeks,” said Shane Oliver, chief economist at AMP Capital. “This is a bullish sign for the small-cap sector, and it suggests that the Russell could continue to rally in the near term
The Nasdaq Composite index also closed higher on Friday, and it also closed above resistance at 12,000. This is a bullish sign for the tech sector, and it suggests that the Nasdaq could continue to rally in the near term.
“The Nasdaq Composite index has closed above resistance at 12,000,” said Chris Weston, chief market analyst at Pepperstone. “This is a bullish sign for the tech sector, and it suggests that the Nasdaq could continue to rally in the near term.”
One of the biggest risks to the bull market is rising interest rates. The Federal Reserve is expected to raise interest rates several times this year, and this could put pressure on stock prices. Another risk is the ongoing trade war between the United States and China. This could lead to a slowdown in global economic growth, which could also hurt stock prices.
Technical analysis
The technical indicators for the S&P 500, Russell 2000, and Emini futures are all bullish. The S&P 500 is above its 50-day and 200-day moving averages, and the Russell 2000 is above its 50-day moving average. The Emini futures are also above their 50-day and 200-day moving averages.
However, the markets are close to their all-time highs, and there is a risk of a correction. Investors should be prepared for some volatility in the near term.
Conclusion
The markets were positive on Friday, and they were supported by strong earnings and a bullish technical outlook. The S&P 500 earnings season is off to a strong start, and corporate credit has held up well. This is a positive sign for the economy, and it suggests that corporate America is still in good shape. The Russell 2000 index has finally broken free of the congestion that it has been trading in for the past few weeks, and this is a bullish sign for the small-cap sector. The Nasdaq Composite index has closed above resistance at 12,000, and this is a bullish sign for the tech sector. Overall, the markets are looking positive, and they could continue to rally in the near term.
