Institution: US Stocks Have Escaped the "Black Hole" and Clear Path to Upside

BlockBeats News, May 15, Wednesday's market performance did not bring much cheer to Wall Street, but the relatively calm trading period may signal a positive development: the market environment is moving towards a more normalized direction. The S&P 500 Index traded slightly sideways throughout Wednesday, ending the day with a modest 0.1% gain at closing. Andrew Graham, Managing Partner and Co-Founder of Jackson Square Capital, indicated that since Wednesday was a relatively quiet day in terms of economic data, the market remained stable ahead of Thursday's release of the April Producer Price Index (PPI) and Retail Sales data.

Jason Hunter, Head of Technical Strategy at JPMorgan, stated in a client report on Tuesday evening that the U.S. market seems to have emerged from the "black hole" and may be entering a slow upward channel. He wrote: "If history is any guide, the S&P 500 Index's 'bull market gap' covers the key resistance levels of 5750-5785, signaling a return to a low-volatility bounce-back pattern." He was referring to the index's significant gap up on Monday.

Hunter pointed out that the stock market currently appears to have a clear upward path, with a potential further increase of about 4%. He stated: "Until we see clear signs of a slowdown in trend, the emergence of technical patterns resembling short-term tops, or headline news that could reverse the emerging bullish sentiment, we have identified the 6125-6170 point range as a potential upside target area." (Jin10)