Market Analysis: US Stocks Continue to Rise

<img src="https://fxopen.com/blog/en/content/images/2023/07/US-stocks1.jpg" alt="Market Analysis: US Stocks Continue to Rise" /><p><br>After a turbulent week filled with macroeconomic news and decisions of the central bank of the leading economies, on Monday morning futures for the E-mini S&amp;P 500 index look bullish, being near the highs of the year.</p><p>The following factors contribute to the positive in the market:</p><ul><li>Friday&apos;s data indicating a slowdown in inflation. The Core PCE Price index was 0.2% in monthly terms (expected = 0.3%, last month = 0.3%).</li><li> The probability of a rate hike in September according to FEDWatch is only 20%. The US economy is moving towards a soft landing, according to WSJ analysts.</li><li> Strong reports from a number of companies for the 2nd quarter, including Google. Also, market participants are looking forward to new reports with enthusiasm — news for AAPL, AMZN, AMD and other companies included in the S&amp;P 500 index are scheduled this week.</li></ul><p>However, analysts at Bank of America note that the cost of options used to hedge against falling stock prices is at an all-time low — evidence of excessive positivity in the market, which could lead to a correction.<br></p><figure><img src="https://lh5.googleusercontent.com/eP65XhCSn5LrLhPpqS2Yu0nF18pvh5cA8eyBo1Cc5cU4Eb_vhzmK0FeEget8WXe0QZYDFSJ7HF7D2IcKMLiaFnMbK4N-VNebfFdCkxe5MJvFrOoNky-wmEaRTMXG-RMe32yUfJBRZecJR4JblVQyhFg" alt="Market Analysis: US Stocks Continue to Rise" loading="lazy" /></figure><p>The S&amp;P 500 index chart shows that the price is in a vulnerable position for a pullback, as it is in the resistance area:</p><ul><li> from the psychological level 4,600;</li><li> from the upper border of the ascending channel (shown in blue).</li></ul><p>Support levels:</p><ul><li>4,490 level, which corresponds to approximately 50% of the rally from July lows to its high</li><li> median line of the ascending channel. It seems unattainable, but Bloomberg reminds us that August and September are historically the worst months for stock prices from the S&amp;P 500 index.</li></ul>