SP500 and the future of index

The Standard & Poor’s 500, also known as the S&P 500, is a stock market index that measures the performance of 500 large companies listed on US stock exchanges. It was created in 1957 by Standard & Poor’s, a financial services company that provides research and analysis on stocks and other financial instruments.

The S&P 500 is often used as a benchmark for the US stock market, as it represents a diverse range of industries and sectors. The companies included in the index are chosen based on their market capitalization, liquidity, and other factors. As of 2021, the companies included in the index represent about 80% of the total market capitalization of US equities.

Since its creation, the S&P 500 has become one of the most widely followed and analyzed stock market indexes in the world. It is often used as a measure of the overall health and performance of the US economy and is frequently referenced in financial news and analysis.

Over the years, the S&P 500 has experienced significant growth and volatility. In its early years, the index saw moderate growth, with occasional periods of decline. However, in the 1980s and 1990s, the index saw significant growth, driven by factors such as the rise of technology companies and the overall strength of the US economy.

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In the early 2000s, the S&P 500 experienced a period of volatility, as the dot-com bubble burst and the US economy entered a recession. However, the index recovered in the mid-2000s and saw steady growth throughout the rest of the decade.

The financial crisis of 2008 had a significant impact on the S&P 500, as the index saw a sharp decline in value in the latter part of that year. However, the index recovered in the years following the crisis and saw significant growth in the 2010s.

In recent years, the S&P 500 has continued to experience growth and volatility, driven by factors such as geopolitical events, economic policies, and changes in the global economy. For example, the index saw significant growth in 2020, despite the economic impact of the COVID-19 pandemic.

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Overall, the S&P 500 has become an important indicator of the performance and health of the US economy and is closely followed by investors, analysts, and policymakers. Its growth and volatility over the years reflect the complex and ever-changing nature of the global economy.

Investors can gain exposure to the S&P 500 through various financial instruments, such as index funds, exchange-traded funds (ETFs), and futures contracts. These instruments allow investors to track the performance of the index and potentially benefit from its growth.

In conclusion, the S&P 500 is a stock market index that measures the performance of 500 large companies listed on US stock exchanges. It was created in 1957 by Standard & Poor’s and has become an important indicator of the health and performance of the US economy. Over the years, the index has experienced significant growth and volatility, reflecting the ever-changing nature of the global economy. Investors can gain exposure to the S&P 500 through various financial instruments and potentially benefit from its growth.

In the previous graph (with a monthly periodicity, and which can be observed since 1998), I have decided not to put down the temporality to focus on the price itself, in the technical analysis.

Everything indicates that the price can go down but… I also see signs of an upward turn and, respecting 3,500 “point zone”, make one last and surprising upward movement, now that it seems that the world is ending and the banks, all of them, are going to close (author’s note, banking joke)

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In this second graph, now closer in time, what I see is a bullish channel, finished and the price on the support, it is supported, it does not lose it and it begins to rise.

Therefore, nobody is ever sure that something is going to happen, but if the bullish channel is maintained, it could now find its central point and that… is not going down, but making a new upward movement, which many do not expect.

Not Financial Advide.

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