For the second week in a row the S&P 500 index was reaching a new highest level ever. During the previous week it was at 4.908. The new levels were supported by released better than expected figures for the GDP growth for the Q4 of 2023. The US economy rose by 3.3%, while the market was expecting to see figure of 2.0%. Still, the index slowed down a bit, after reaching a new ATH, and finished the week at 4.890. The short reversal occurred after several earnings reports, where semiconductor and chip industries were among major weekly losers. Here should also be mention TSLA, which declined by 13.6% within a week. Still, it was a relatively good week for the S&P 500, which increased by 1.1% on a weekly basis.
After reaching its historical highest levels, there has been a sort of exhaustion of the market to push the index to the upside. The index is already moving within a highly overbought momentum, which might trigger its short reversal in the coming days. Still, it should be considered that the FOMC meeting is scheduled for the week ahead, where some higher volatility might be triggered, in case of some new Fed's rhetoric which the market did not priced up to this moment.
After reaching its historical highest levels, there has been a sort of exhaustion of the market to push the index to the upside. The index is already moving within a highly overbought momentum, which might trigger its short reversal in the coming days. Still, it should be considered that the FOMC meeting is scheduled for the week ahead, where some higher volatility might be triggered, in case of some new Fed's rhetoric which the market did not priced up to this moment.
