26 Jun 2021, 16:24

In the S&P 500 chart, we see the index breaking above the wedge’s brown resistance line and form a new all-time high. This was quite unexpected as we forecasted that the index could return back to at least the blue support line before bouncing up. The bears were pretty much in control the week before after investors turned pessimistic after the Federal Reserve Chairman announced that the Central Bank could bring forward interest rates hike earlier than expected. Fears of rising inflation still loom in the market but we see that this could be positive in the shorter term. If inflation were to be expected to rise up soon, this could be in fact good for stocks. This means that companies could expect to see their profits rise in the interim.

The question now is, could the market go even higher? July is traditionally bullish after the weaker months of May and June. We could potentially see the markets move even higher. We hope to have a good week and, certainly, a good month of July. Expect more profit-taking activities in the next few weeks. 

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