S&P 500 Index Goes ‘Beyond Wildest Imagination’: So What’s Next?

Vinod Dsouza
S&P 500 Index
Source: Finbold

The S&P 500 index is printing new highs this year in 2024 despite analysts and global banks predicting a recession. Leading banks like JP Morgan, Standard Chartered, and Goldman Sachs have been warning that a recession could hit the U.S. markets in the second half of 2024.

Despite the warnings, the stock market, the U.S. economy, and the jobs sector seem to be healthy with little damage. The S&P 500 index is touching new highs in 2024 paying no heed to the doomsday soothsayers. Both retail investors and institutional funds are making the most of the rise by investing in diverse index funds.

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What Next For the S&P 500 Index?

s&p 500 index
Source: Finbold

The S&P 500 index touched a new all-time high of 5,655 last week and ended Friday’s trade at 5,615. It is up nearly 20% year-to-date and is gearing to go further north. However, one strange development is haunting the U.S. equity market as stocks are going south while the index is heading north.

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In 15 out of the 30 trading sessions, the S&P 500 index has moved north. Simultaneously, in the same trading sessions, leading U.S. stocks have dipped in price whenever the index shot up. The analysis was shared by Global Markets Investor highlighting that the trend is “beyond your wildest imagination.”

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“This is beyond your wildest imagination. In 15 out of the last 30 trading sessions, the S&P 500 has moved in one direction while ‘net advance/decline moves’ in the opposite. In other words, when S&P 500 rallied then most stocks of the index declined and vice versa. Wild divergence,” read the tweet.

If the S&P 500 index maintains its positive momentum and rises 7% in the coming months, it could breach the 6,000 mark. The move will usher the U.S. stock market into a new era of financial opportunities.