SPX500 Blowout 2021
SPX500
The current year has been very good for the US stock market and for SPX500 in particular, which gains nearly 30% from the start of the year until Wednesday. More to it, only three months of 2021 were negative and the index has registered record highs on every month of 2021.
Past Performance: Past Performance is not an indicator of future results.
The last losing month was November, partly due to the Fed's increasingly hawkish rhetoric and the start of Quantitative Easing tapering, but it was not enough to derail the rally, nor was the SPX500 really bothered by the faster pace of tapering announced earlier this month.
The index rises around 1.5% this week as the Santa Rally in underway, but trades off Tuesday's all-time highs (4,810). From here, it has the ability to break new ground towards 4,850, although the upside is uncharted territory.
Despite the impressive start of the week, SPX500 consolidates over the last couple of days, as investors appear cautious ahead of the year-end. This can lead to selling pressure, but a catalyst will be needed for new weekly lows (4,726).
Investors will look to US Jobless Claims later in the day for impetus, while caution is needed for holiday liquidity/volatility conditions.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
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