S&P500 (SPX) Price Analysis – July 05, 2023

Daily Price Outlook

On Wednesday, the SPX Index is +0.12% up from its previous 24-hours level at $4455.59. According to the head analyst at BMO, a bullish scenario would see the S&P 500 index increase by another 13% by year's end.

Tech and bank stocks may help the S&P 500 reach a new high, according to the head of BMO's investment division.

Thanks to better-than-expected tech and bank sector results, the S&P 500 might increase by another 13% to reach a new high by the end of the year, according to the head of BMO's investment division.

With the S&P 500 already up 16% this year, Belski's 5,050-point price goal would see the index continue its remarkable run from the first half of 2023.

Belski thinks that both equities and fixed-income assets have entered a "normalization phase" as the Federal Reserve approaches the end of its tightening cycle, after offering dismal returns in 2022. Many analysts have identified the rise of AI as the primary driver behind the stock-market rally.

"That's a great position to have in both bonds and stocks going forward for at least the next three to five years," Belski noted.

In such a case, the benchmark index would rise due to better-than-anticipated tech and bank results, according to Brian Belski.

Tesal's exceptional Q2 performance sparked an upswing in EV companies

The best-performing stock was Tesla, with shares rising 6.9% as a result of production and delivery figures that exceeded expectations. Other electric car stocks including Rivian, Fisker, and Lucid also saw this upward trend.

Additionally, major banks performed well, increasing dividends and passing the Federal Reserve's health assessment. The S&P 500 banks index grew by 1.5%, Citigroup jumped by 1.5%, and Wells Fargo shares surged by 1.7%.

Since Tesla consistently outperforms the competition, all EV manufacturers increase gain. The S&P 500 is rising because of the outstanding performance of Tesla.

SPX Price Chart – Source: Tradingview

S&P500 (SPX) - Technical analysis

Based on technical analysis, the S&P 500 index has successfully surpassed the critical resistance level at 4,440, indicating a strong likelihood of an ongoing bullish trend. The confirmation of this breakthrough is evident through the presence of a bullish candle closing above the mentioned level. Moving forward, the next resistance levels to monitor are at 4,511 and 4,525.

Conversely, a breach of the support at 4,440 could trigger a substantial downward movement, with a significant support level anticipated around 4,395.

Supporting the positive outlook, the exponential moving average and indicators like the relative strength index and moving average convergence divergence all align with the prevailing bullish sentiment surrounding the SPX.

These indicators suggest that the upward trend is likely to persist. Therefore, it is crucial to closely observe the 4,440 level as it holds the potential to serve as a pivotal point for today's trading activities.