Piper Sandler casts some doubt on the sustainability of the recent market uptrend. “This recovery in the stock market is questionable at best,” said Chief Market Technician Craig Johnson. “We believe the market has entered the High Level Trading Range (HLTR) over the past few weeks. Our outlook is that SPX will fluctuate between 4,600 and 4,800 on the low end and around 5,100 on the high end in the coming months. Last week, weak April employment data raised expectations that the Federal Reserve is on track to cut interest rates into 2024, leading to lower earnings. Stock prices rose as the number continued to increase. The move follows April’s decline in stock prices and the Dow Jones Industrial Average’s worst month since September 2022. SPX YTD Mountain S&P 500 Stock Price Year to date, the S&P 500 is up more than 8%, and the lower end of the company’s range means the benchmark could fall 10% from Friday’s closing price. Suggests. Despite this seemingly positive backdrop, the current situation suggests that it may be too early to tell whether there is anything more to the rise, and the company has decided to take a “more tactical approach”. I have no choice but to support it. Referring to the 50-day moving average of the major U.S. stock benchmarks, he said, “We’re on the lookout, especially as all the major indexes…gap up to challenge resistance at their respective 50-day moving averages. I prefer a visual approach.” If an asset rises above his 50-day moving average, it is considered a sign of strong momentum. The S&P 500 rose on Monday, breaking above its 50-day moving average. The market-wide index hasn’t closed above that level since April 12. The Nasdaq is also trading above its 50-day average.
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