S&P 500 
You can see how the S&P 500 responds to general US economy by looking at the upward trend between 2012 and 2015. During this time, the US economy was thriving and the value of the S&P 500 index soared as well. By the 21st of May of 2015, the index closed at its all-time high of 2130.92 since its inception. Such remarkable uptrends always come to an end though, and the correction happened in the days between the 18th and 21st of August.
At this time, the value of the index dropped 11% continuously without correction, creating the sharpest downtrend ever seen. The technical indicators showed the ‘Death Cross’ which is signified by a downward crossing of the 50-day moving average against the 200-day moving average. Prior to this, the value of the S&P 500 was trending above the 200-day moving average leading to the all-time highs, but the ‘Death Cross’ reversed that progress in only a few days. This resulted in the lower performance of the retail FX brokers, many of which went out of business, reading Forex brokers reviews might help in choosing a proper partner in trade.
It quickly recovered, though, after the FED statement indicated a hawkish sentiment. Speculators thought the interest rake height would come as early as September 2015, and the S&P recovered quickly on the back of this news. By the 3rd of November 2015, the S&P was back above the 2100 mark and showing signs of recovery. Then came the gradual decline that marked the beginning of 2016.
Between the end of 2015 and January 2016, most company’s stocks were falling, and because the S&P index represents most of them, it fell too. Although the decline was gradual, it brought the value of the S&P down to record lows, closing at 1827 on the 11th of February 2016. From that day, the S&P steadily rose after fears of economic slowdown in China were allayed and US stocks began to bounce back.
Besides China, the European Central Bank (ECB) had launched a stimulus package and the price of oil was starting to rise again. Many American companies had suffered from the oil glut by Saudi Arabia and had led to many oil companies to file for bankruptcy. Now, with oil trading above $40, many oil companies, several of which are listed on the S&P 500 improved, causing the index to rise back to highs above 2000 and above the 200-day moving average.
A slight dip can be seen on the 24th of June after the Brexit poll that saw the UK leave the EU. The dip was mostly due to uncertainty, but it didn’t deter the S&P’s rise to close at about 2189 on the 15th of August 2016. Toward the US general elections on 9th of November 2016, the value of the index started falling gradually, again because of the uncertainty. On the day of the elections, US stocks dipped sharply before rising astronomically for the rest of the year.
The results of the elections also shattered the previous high of 2130 set in May 2015, and the value of the S&P 500 index hasn’t shown any signs of slowing down since Trump became president. For the rest of the year, further measures to raise oil prices and interest rate hikes by the FED are bound to push the S&P even higher.
At this time, the value of the index dropped 11% continuously without correction, creating the sharpest downtrend ever seen. The technical indicators showed the ‘Death Cross’ which is signified by a downward crossing of the 50-day moving average against the 200-day moving average. Prior to this, the value of the S&P 500 was trending above the 200-day moving average leading to the all-time highs, but the ‘Death Cross’ reversed that progress in only a few days. This resulted in the lower performance of the retail FX brokers, many of which went out of business, reading Forex brokers reviews might help in choosing a proper partner in trade.
It quickly recovered, though, after the FED statement indicated a hawkish sentiment. Speculators thought the interest rake height would come as early as September 2015, and the S&P recovered quickly on the back of this news. By the 3rd of November 2015, the S&P was back above the 2100 mark and showing signs of recovery. Then came the gradual decline that marked the beginning of 2016.
Between the end of 2015 and January 2016, most company’s stocks were falling, and because the S&P index represents most of them, it fell too. Although the decline was gradual, it brought the value of the S&P down to record lows, closing at 1827 on the 11th of February 2016. From that day, the S&P steadily rose after fears of economic slowdown in China were allayed and US stocks began to bounce back.
Besides China, the European Central Bank (ECB) had launched a stimulus package and the price of oil was starting to rise again. Many American companies had suffered from the oil glut by Saudi Arabia and had led to many oil companies to file for bankruptcy. Now, with oil trading above $40, many oil companies, several of which are listed on the S&P 500 improved, causing the index to rise back to highs above 2000 and above the 200-day moving average.
A slight dip can be seen on the 24th of June after the Brexit poll that saw the UK leave the EU. The dip was mostly due to uncertainty, but it didn’t deter the S&P’s rise to close at about 2189 on the 15th of August 2016. Toward the US general elections on 9th of November 2016, the value of the index started falling gradually, again because of the uncertainty. On the day of the elections, US stocks dipped sharply before rising astronomically for the rest of the year.
The results of the elections also shattered the previous high of 2130 set in May 2015, and the value of the S&P 500 index hasn’t shown any signs of slowing down since Trump became president. For the rest of the year, further measures to raise oil prices and interest rate hikes by the FED are bound to push the S&P even higher.
