At the end of December 2024, the S&P 500 Index (SPX) shows positive trends, supported by an optimistic outlook for the economy. According to historical data, 11 sectors of the U.S. economy show growth after Christmas, which creates a favorable backdrop for the stock market. The last days of December see traditional stock market activity, which could lead to further gains in the S&P 500 in early 2025. Bulls hope for the so-called “Santa Claus Rally,” when stocks traditionally rise during the last five trading sessions of the year and the first two days of the new year.
Before the inauguration of the new president at the end of January, opportunities for market growth are open. Earlier, newly elected US President Donald Trump promised to impose massive tariffs. In this regard, traders may seek to take profits or reallocate their assets. This situation creates optimistic expectations among market participants, who hope for favorable conditions for investments.
The upcoming economic event is the publication of the Trade Balance Report for November, where the deficit is expected to decrease. This may have a positive impact on the S&P 500 index and strengthen the dollar, but too much strengthening may have a negative impact on exporters, which is important to consider when forming an investment strategy.
From a technical point of view, the S&P 500 is in the neutral zone, demonstrating the weakening of bearish momentum, which opens new opportunities for further growth. The MACD indicator, which previously signaled a bearish trend, shows that the downward momentum is weakening, while the RSI is not in overbought or oversold zones, providing a space for further movement.
The overall recommendation is to buy S&P 500 between 5980–6080 to take advantage of positive trends in the market. Profits should be taken at the level of 6200. A Stop-loss could be set at the level of 5940.
This content is for informational purposes only and is not intended to be investing advice.
