S&P 500 finished the third week of gains, adding 1% on Friday trading. The index was supported by the posted data indicating that the inflation is slowing down. Relatively solid economic data is increasing the probability that the US economy would escape a recession scenario, which strong increase of reference interest rates might cause. Although the Fed increased rates again by 25 bps during the previous week, there is increased sentiment among investors that the Fed might soon stop with further monetary tightening, which would be positive for financial markets.
The index continues to move within the highly overbought side. Current market optimism might push the index even higher from current levels. However, it might be questionable if next earnings season will support these levels, still, there is enough time until these data are published. The highest weekly level reached was 4.600 points, from where the index reverted a bit, ending the week at level of 4.582. The index is evidently slowing down around these levels, so some short break might be possible in the coming period. In this sense, there is potential for 4.500 to be tested.
The index continues to move within the highly overbought side. Current market optimism might push the index even higher from current levels. However, it might be questionable if next earnings season will support these levels, still, there is enough time until these data are published. The highest weekly level reached was 4.600 points, from where the index reverted a bit, ending the week at level of 4.582. The index is evidently slowing down around these levels, so some short break might be possible in the coming period. In this sense, there is potential for 4.500 to be tested.
