S&P 500 Reached 4,000 – Is Bear Market Over?

After gaining by 5.5% on Thursday, the S&P 500 index gained by 0.92% on Friday. The market remained positive after the release of the Consumer Price Index on Thursday, and the index for the entire stock market rose to its highest level since September 13. On Friday, the day's high was 4,001.48.

This morning's opening of the S&P 500 index is predicted to be 0.3% lower. We might see a profit-taking strategy at some time. There haven't, however, been any unambiguous early warning indications.

On the daily chart, we can see that the S&P 500 index broke over its prior regional highs last week and hit the 4,000 level.

Futures Contract with Short-Term Uncertainty

Let's examine the hourly chart for the S&P 500 futures contract. It barely climbed beyond the 4,000 level on Friday. It appears to be in a short-term consolidation phase right now, or it may be a flat decrease within an uptrend. Among other things, the resistance level is between 4,000 and 4,050.

In our opinion, there are presently no positions that are warranted in terms of risk versus reward.

Conclusion

The stock market is anticipated to vary after last week's huge increase from Thursday to Friday. The S&P 500 index may pause after reaching 4,000 last week. The market appears to be briefly overbought, so during the trading day we might see some profit-taking. There haven't, however, been any unambiguous early warning indications.