uploads/2017/12/Major-US-Indexes-in-November-2017-2017-12-04-1.jpg

S&P 500 Index at New Highs: Will Bulls Push It Higher?

By

Updated

New highs for the S&P 500 index

The S&P 500 Index (SPY) (SPX-INDEX) had a solid performance in November 2017, rising ~3%. It hit new highs nearly every day of the month.

Article continues below advertisement

Major US indexes in November

The Dow Jones Industrial Average Index (DJIA-INDEX) and the Nasdaq Composite Index (COMP-INDEX) rose 3.8% and 2.1%, respectively, in November. The SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500 Index, rose 3% in November. Overall, November was a fruitful month for market participants and investors.

The fundamental factors of the US economy (QQQ) have been improving significantly. The improvement in consumer confidence, consumer spending, inflation, and the labor market have been the market’s main drivers. US economic growth is also showing solid improvement. In 3Q17, the US GDP growth rate was 3.3% compared to 3.1% in 2Q17. It was also higher than the preliminary market expectation of 3.2%.

Progress on the tax reform bill is also boosting investor confidence. The House and the Senate have both passed their tax reform bills, and now they just have to synchronize those bills into one. Strong confidence that the bill will pass and improvement in earnings growth are causing the S&P 500 Index to hit new highs.

In the next part of this series, we’ll analyze what moving averages are indicating for the S&P 500 Index.

Advertisement

More From Market Realist