All-Time Highs In View For The S&P 500 (US500)

Key Points

• The S&P 500 is closing in on all-time highs.
• US Durable goods came in hot to open the week.
• Expect heavy two-way action when the S&P 500 reaches the all-time high threshold.

Market Overview

August has been an epic month for the S&P 500. On 5 August, a major global market meltdown sparked panic around the world. Since then, the buyback has been on. The S&P 500 is now within a stone’s throw of posting fresh all-time highs above 5,670. With only a few trading days left until September, US large-cap stocks are back, and bidders are owning the markets.

US Durable Goods

It’s rare to have a market-moving economic event scheduled for a Monday. Today is the exception, with US Durable Goods hitting newswires during the pre-Wall Street cash open.

Durable Goods (July) came in at 9.9%, well above the 4.0% expected and June’s dreadful 6.9%. This extremely bullish report supports the concept of steady consumption and, at worst, a ” soft landing” for the US economy.

On the other hand, Core Durable Goods Orders (July) came in at -0.2%, beneath the 0.0% expected and June’s 0.1%. Many analysts favor Core Durable Goods as a superior metric because it excludes certain big-ticket items such as aircraft orders. 

So, today’s Durable Goods reports are a mixed bag. On the whole, the markets are excited about the prospect of coming Fed rate cuts and avoiding recession.

S&P 500 (US500): Technical Outlook

Since 7 August 2024, the S&P 500 has posted 10 out of 12 winning sessions. The aggregate gain from 7 August to 23 August for the US500 is a lofty 8.6%. Without question, this is the largest turnaround this year.

For the US500 CFD contract, all-time highs (5669.8) are right around the corner. At press time, this product is trading just above 5625. Be ready for heavy two-way action as price moves closer to the all-time high threshold. Scalping to the short isn’t a bad way to play this market from just beneath the 5669 level. 

An important observation regarding the S&P 500 is the decreasing trading volumes over the course of August. There’s an old saying: “Never sell a dead market!” That axiom has proved true over the past three weeks, as the S&P 500 has kept rising amid declining volumes. 

The coming five days on the markets feature several market movers for the S&P 500. Late week will be when business picks up, with US GDP (Thursday) and the PCE Price Index (Friday) scheduled. Be ready for volatility as August winds down.