SPX can Add Another $10T in Value by EOY if the Next 2 Weeks Deliver
$S&P 500(.SPX)$ can add another $10T in value by EOY if the next 2 weeks deliver
8 weeks is a long time to be patient. But that’s how long $SPX has been ranging, stuck between ATHs at 7620 and a floor near 7250. Here are three key scenarios you should prepare for going into the next few weeks (The last scenario is the MOST dangerous for profitable traders) 👇
New ATHs 🐂
Financials report strong earnings. CPI data comes in cooler than expected. Tech earnings between now and next week ($Netflix(NFLX)$, $Tesla Motors(TSLA)$, $ASML Holding NV(ASML)$, $Alphabet(GOOGL)$, $Amazon.com(AMZN)$, $Meta Platforms, Inc.(META)$, $Apple(AAPL)$, $Microsoft(MSFT)$) report stronger earnings and leadership confirms that aggressive investment in AI will continue. $S&P 500(.SPX)$ gaps towards if not straight through ATHs. A multi week run occurs: the market rips towards $SPX 8000 without stopping, and now the new, impossible target is shifted towards $S&P 500(.SPX)$ 10,000 by end of 2027.
Back to Lows 🐻
CPI data is hotter than expected. Mixed results from the MAG7 starts to spook the market. 7450 cracks, then 7400 and 7300. 7250 can’t hold against the tide of eager short sellers and every other investor convinced that the top is in. It takes another 8 weeks before the market thinks it’s safe to put risk back on
Consolidation 🔪 (Account Killer)
The market doesn’t care how good the economic data is or how badly some of the megacaps did. $SPX continues its 300 pt range. Quick moves in both direction, no follow through. Everyone who thought they were smarter than the price action gets smoked: every good trade, every great entry, all of it from the last 10 weeks gets erased because traders can’t wait for better conditions.
Patience is the most valuable asset any trader can hold right now. There won’t be a clear direction until tech earnings finish, so there’s no point in being a hero and gambling with your profits: wait and be rewarded!
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