After reaching a record level for three continuous weeks, S&P 500 shares reached their best level of closing in history. However, many experts are worried that this record could possibility be a clearly harbinger that the U.S. stock market is in danger. The S&P ended up trading within 15 points and closed extremely high for thirteen different sessions before eventually breaking through. This shows that shareholders need new or improved catalysts to push above levels of resistance.
“As the stock market is starting to get higher … most upward moves have gotten smaller, and this clearly suggests that a pullback in needed,” Mark Arbeter, technical strategist of New York stock market explained. ‘’ There is a high possibility that stocks are going to decrease by 3% or 5% next week. The index of benchmarks has increased by 10% and this is obviously fuelled by powerful profit growth. This is also due to the new monetary policy that was explained by the Federal Reserve. However, the real issue here is that these gains are beginning to slow down due to investors fretting over the issue in Cyprus.
However, stocks are somewhat being resilient with the S&P closing at an overall level of 1,600 today. This means that investors has the courage to purchase S&P shares even if there are signs that things are slowing down. The S&P has increased over the past 12 weeks which contrasted with the index of volatility. However, this doesn’t mean that the issue is going to continue, especially with what is going on in Cyprus right now. This is an issue that is actually affecting all stock markets in the world right now. Overall, this was an acceptable day in the stock market especially after news for medicare was released especially for health insurance companies that have been suffering for a while now.
Shares of Chrysler increased by 5% AND shares for General motors increased by 3%. Most shares of health insurance companies increased by 16%. Ford motors shares increased by 6% today. This was great news for the company that is facing several lawsuits right now due to increased acceleration in some of their car models which resulted in accidents. UnitedHealth shares ended up closing at $2.77 today whereas WellPoint shares increased by 1.5%. It is expected that shares for health insurance companies are going to continue increasing tomorrow and for the first few days of next week.