April 23, 2024

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US stock markets are unstoppable: can the Nasdaq reach 20,000 points?

US stock markets are unstoppable: can the Nasdaq reach 20,000 points?

Stock markets in Europe are closed today for Easter celebrations. However, trading in America will start at 3.30pm today, which is why I'm taking a quick look at the US indices today.

Take a look at the long-term technical picture for the Nasdaq Composite and the S&P 500. Both indices have been on a strong uptrend for years and have yet to show any signs of fatigue.

After a strong start to the year, with average gains of 10% in the first quarter, stock markets appear poised for an even bigger rally in the rest of the year, with the potential for more records.

Nasdaq Composite Index

The broad US technology index, which, in addition to pure technology funds, includes all other Nasdaq-listed stocks, has had its sights set higher since the start of 2009.

The index has risen by approximately 1,200% in fifteen years, making it one of the best performing indices of the past decade. This bull market remains intact despite a sharp decline in 2022.

At the beginning of last year, the Nasdaq Composite rebounded from the bottom of an uptrend channel and the index turned convincingly higher again. The barrier to the end of 2021 peak is currently being broken, which may give new momentum to the upward phase.

After the clear breakthrough, scope becomes available for a greater increase. The next target point is calculated at 20,000 points.

Standard & Poor's 500 Index

The S&P 500 is one of the most representative indexes of the US stock market and is often used by investors and financial professionals to measure the performance of the broader market. The index consists of companies from various sectors of the US economy, including technology, healthcare, finance, consumer goods and energy.

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The S&P 500 has also been trending upward since 2009. Given the heavy weight of large-cap technology funds in the index, the price development is very similar to that of the Nasdaq: the S&P 500 was equally well protected at the bottom of an uptrend channel and turned higher again at the past. year. However, this indicator recently broke clearly above the recent peak resistance. This uptrend has resumed.

The S&P 500 could continue its upward trajectory towards the calculated target price of 6,000 points. Any correction, at best, will be absorbed above the previous peak at 4,800 points. Retesting this level could provide a new entry point.

Standard & Poor's 500 index price