A Volatile Week Raises the Question: Has the S&P 500 Found Its Bottom?
This week has been eventful, leaving investors wondering: Has the S&P 500 reached its bottom? While everything suggests that this is more than just a temporary rebound, the real test lies ahead. The 200-day moving average, around 5,738 points, will determine whether the index continues its upward momentum or reverses course, confirming this as a mere technical bounce.
Monday set the tone for a challenging start, with markets experiencing a sharp sell-off and deepening losses across major indices. It was a classic Black Monday, with red dominating the screens and steep declines across sectors. Looking back, the key takeaway from this downturn is the importance of waiting for a confirmed bottom before entering new positions. In hindsight, having more cash on hand to deploy during the dip would have been an advantage.
The remainder of the week brought stability and recovery, with stocks rebounding and our portfolio improving significantly. What started as a -4% decline by midweek ended with our portfolio breaking even, a notable turnaround considering the volatility. Given the performance of the S&P 500, I’d classify this as a solid week despite its rocky start.
Looking Ahead: A Bullish Outlook with Strong Upside Potential
If this rally proves to be more than just a dead-cat bounce, our portfolio is positioned for strong gains, with the potential to climb +40% before September’s seasonal downturn. The coming weeks will be crucial in determining whether the market continues its upward trajectory or faces renewed selling pressure.
Final Thoughts
In summary, it was a challenging week filled with market swings, but it also brought hope and optimism for the weeks ahead. If the rally holds, we are well-positioned to capitalize on further gains. Let’s see how the market unfolds—until next week! 🚀📈
