S&P 500 May Be Up For More Bull Rallies – Peter Schultz
The 3,000 level in S&P 500 has long been dubbed the critical resistance that is to be sustainably broken for a strong, potentially long-term bullish pattern to be established in the market. The upward rally on Tuesday has tested the level, however, the breakout wasn’t sustainable with the market immediately falling back to the 2,995 level. According to the analysts, a major contribution to the yesterday’s, October 15th, 2019’s rally came from the Brexit related optimism and Johnson and Johnson stock gaining an incredible 2.45% within a matter of hours.
Breakout Of 3,020 Level Is Needed For A Stronger Bullish Trend
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Upon meticulously analyzing the charts, Winning Secret newsletter’s author, Mr. Peter Schultz has declared an imminent bullish pattern in the S&P 500 index. According to him, breakout of the 3,020 level will positively set the market for a bull run. With the market currently trading at 2,987.28, he has opinionated that one single day of decent gains in the index can push it higher and start a streak of consecutive new highs.
Mr. Schultz has justified his analysis in light of the recent developments that have eased off the U.S – China trade war. With Federal Reserve expressing a probability of a rate cut for the third time this year by the end of the month, it is anticipated that the SPX index may have a few more bull rallies up its sleeve. The defensive sectors or the ones that are considerably reliant on the interest rate such as REITs or utilities are currently approaching the peak prices.
Following Bank of America’s third-quarter earnings which were better than the forecast, the stock has gained as much as 1.90%. According to Financial Post, Apollo Global Management has recently sealed a deal with Tech Data that amounts to around $5 billion. TECD, the IT equipment distributor’s stock in response has risen by an amazing 14.13% as per the latest report.
Yum, Netflix, AmerisourceBergen, and Abbott Laboratories are among a few of the other stocks that have been labeled “interesting” by the financial experts.
Economic Data Likely To Move The Market On Wednesday
In terms of economic data that is likely to cast an impact on the S&P 500 index is monthly retail sales report for the United States of America that has been published a few hours earlier (13:30 GMT + 1) on Wednesday, October 16th, 2019. The figure highlighted that retail sales have declined by 0.3% in the month of September. The revised figures for August were considerably better.
FOMC member Brainard is set to deliver a speech at 20:00 GMT + 1 (almost an hour from now). It is recommended for the investors to keep an eye on the speech for clues on whether or not further leniency can be expected in monetary policy, a factor that will play a crucial role in devising the strategies for the traders.