Sp 500 Ready To Bounce

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Sp 500 Ready To Bounce

SP 500 Ready To Bounce, According To Jpmorgan

According to JPMorgan analysts, the S&P 500 index appears to be all ready for a tactical bounce from the current levels.

They added that the stock positioning is similar to what was seen in October 2023. At that time, the S&P 500 also experienced a bounce based on an attractive setup.

JPMorgan uses a proprietary indicator to look out for such set-ups in the S&P 500. According to them, the indicator is now at the same level as seen just a year ago.

S&Amp;Amp;P 500 To Gain 3% Upside

If we look back towards August 2023, the S&P 500 gained almost 3% within the next 20 days. So if we take that into account, it means the S&P 500 can also gain 3% or more in the next few weeks.

Another thing that hints at an upside in the S&P 500 is the earnings released by the mega-cap stocks of the US markets. Additionally, a lot of big listed US stock companies are also expected to release their PCE data as well.

So, it makes perfect sense for the S&P 500 to stage a rally of 3% or even more based on the upcoming earnings season. However, this is based on the idea that the majority of the upcoming data will be positive and in line with the forecasts made by the experts.

JPMorgan also added that favorable releases will overshoot the markets to the upside. Additionally, it appears that the investors are now favoring the idea of buying any dips.

At the same time, the tech stocks appear to be supported as they are being bought near the support levels. Amidst all of this, artificial intelligence remains the dominant theme in the tech sector and even the entire US market.

Overall, the bigger picture is that S&P 500 along with other US indexes are all set to stage upside in the next few days. However, this entire idea is hanging on the outcome of a favorable earnings release.

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