S&P500
Weekly review of US stock market for October 20 - 26.
The US market is following a steady uptrend, hitting new highs of the year. Despite the high level of prices, large investors are still willing to continue buying.
The relevant news, particularly the US GDP report for the third quarter is due this week. Analysts are predicting US GDP growth in the range of 2.5-3.5%. It is below the 6% rise in the second quarter. However, it is appropriate for the large-scale US economy. On Friday, the RSE inflation report is scheduled and inflation is expected at 3.6% y/y. Besides, it is significant data before the Fed meeting begins on November 3. The Fed is expected to announce the start of tapering of its quantative easing program. Currently, it totals $120 billion a month. The Fed's statement on future economic perspective is of key importance.
Weekly gain:
The Dow Jones is 35150 - 35740, rising by 590 pips or 1.7%
The S&P500 is 4500 - 4560, advancing by 60 pips or 1.2%.
The NASDAQ composite 15070 - 15220, growing by 150 pips or 1%
Outlook:
The approximate range for the Dow Jones is 35400 - 35900
The approximate range for the S&P500 is 4520 - 4600
The approximate range for NASDAQ is 15100 - 15350
Conclusion
The US stock market is demonstrating rapid growth. Notably, it concerns the last stage. Moreover, the global cycle of US market rise is ending and its growth potential is insignificant, amounting to no more than 10 - 15%.
