S&P 500 (SPX, +0.93%) Hits 13-Month High, Climbing Over 20% From October
On Monday, the S&P 500 jumped to its highest level in 13 months, marking a significant surge in investor optimism. Traders are hoping that the Federal Reserve will refrain from hiking rates in the imminent policy decision due this Wednesday. This leap represents a momentous occasion for the market, signifying the end of the bear market and the beginning of a potential bull run.
Upcoming Tuesday's inflation data could further bolster the narrative of decreasing inflation rates. Economists predict that the consumer price index will show inflation dropping to a 4% annual rate in May, a noticeable decrease from the 4.9% in the previous month.
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This positive sentiment isn't limited to the S&P 500. Last week, the benchmark index reached a milestone by gaining more than 20% off its October low, prompting many investors to announce the end of the bear market. The Nasdaq Composite has seen even more substantial growth, up 33% from its 52-week low.
Leading the charge in Monday's surge were the Nasdaq and technology stocks, with giants like Amazon and Tesla each gaining more than 2%. This comes as the Nasdaq continues a seven-week winning streak.
This rally initiates a busy week for the US economy, with inflation data expected on Tuesday and the Federal Reserve's policy decision due on Wednesday afternoon. All three major indexes - the Nasdaq Composite, the S&P 500, and the Dow Jones Industrial Average - ended Monday higher, with Nasdaq leading the gains with a 1.53% rise.
Historical data also provides a silver lining for investors. After the end of previous bear markets, stocks such as Target (TGT), TJX (TJX), and Tyler Technologies (TYL) consistently outperformed, each jumping an average of 30% or more in just 12 months.
After a grueling 162 trading days to overcome the last bear market, such historical trends provide much-needed relief for investors. Ryan Detrick, a strategist at Carson Group, points out that the S&P 500 gained 28.2% on average in the 12 months after rising 20% from bear market lows.
While the market's optimism is currently high, investors should keep a keen eye on the upcoming inflation data and the Federal Reserve's policy decision. These factors could influence the trajectory of the market in the weeks and months to come.
XLG sees MACD Histogram crosses below signal line
XLG saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 18, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 49 instances where the indicator turned negative. In of the 49 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on XLG as a result. In of 70 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
XLG moved below its 50-day moving average on September 19, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for XLG crossed bearishly below the 50-day moving average on September 22, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for XLG entered a downward trend on August 29, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XLG advanced for three days, in of 363 cases, the price rose further within the following month. The odds of a continued upward trend are .
XLG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
Category LargeBlend
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| FLTN | 19.78 | 0.05 | +0.28% |
| Rareview Inflation/Deflation ETF | |||
| MQT | 9.19 | -0.09 | -0.97% |
| Blackrock Muni Yield Quality Fund II | |||
| MQY | 10.40 | -0.12 | -1.14% |
| Blackrock Muni Yield Quality Fund | |||
| PSCC | 34.64 | -0.49 | -1.39% |
| Invesco S&P SmallCap Consumer Stapl ETF | |||
| USML | 27.65 | -0.62 | -2.20% |
| ETRACS 2x Lvrgd MSCI US Mn Vl Fct TR ETN | |||
XLG and
Correlation & Price change
A.I.dvisor indicates that over the last year, XLG has been closely correlated with SPY. These tickers have moved in lockstep 95% of the time. This A.I.-generated data suggests there is a high statistical probability that if XLG jumps, then SPY could also see price increases.