S&P 500: The S&P 500 is retesting 4,200 as the bulls are in full control

 


The S&P 500 bounced off its trendline support, at ~ 4,115, and took off Wednesday on the CNN report, "Biden says he's confident leaders will reach an agreement on debt limit". Separately on Wednesday, the Atlanta Fed released their GDPNow model estimate for real GDP growth in the second quarter of 2023 to be 2.9%.

Fed Chair Powell said on Friday that rates may not have to rise as much as expected to curb inflation, per CNBC. The spread between the 2Y U.S. Treasury yield and its 600-day EMA now stands at 1.29%, meaning an impending U.S. recession is unlikely.

It's starting to look like the "Sell in May and go away" theory will not apply this year. The next resistance is 4,279, if the index breaks above 4,200.

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!



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