JPMorgan Chase on the S&P 500’s technicals
Previously, we discussed JPMorgan Chase (JPM) analyst Jason Hunter’s view that the broader-market S&P 500 (SPY) could reach new highs in future months. According to CNBC, in a note to clients, he stated that “technicals continue to suggest consolidation within a late-cycle rally. Look for new highs in the months ahead.” He added that “even if the market folds back into the Apr-May holding pattern and spends more time ranging above critical support in the 2,500s, the 2018 price action still looks like a consolidation within an intact late-cycle bull market.”
The S&P 500 reached an all-time high of 2,872.87 on January 26. However, 2,800 has been an important resistance level for the index, and it has been struggling within the 2,650–2,750 range for the last three months. According to JPMorgan Chase, this struggle could signal that the index is in consolidation. We might soon see the S&P 500 break away and rise higher.
The NASDAQ Composite (QQQ) has been trading at 7,200–7,500, and the Dow Jones Industrial Average (DIA) has been trading at 23,800–24,600 in the past three months. In the next part of this series, we’ll analyze JPMorgan Chase’s views on the financial sector.