Summer Consolidation Continues
The S&P 500 had a solid week, gaining almost 1% to close at 7,575 points. That leaves the index less than 50 points away from its all-time high. One of the biggest drivers of the rally was $META, which surged by more than 13% over the last five trading days.
That said, we’re still stuck in the same sideways range we’ve been trading in since May. The S&P has rallied significantly from its March lows, but for now it’s a waiting game.
My gut feeling is that we won’t see a major breakout, either to the upside or the downside, during the summer. This season is traditionally quieter, with many people on holiday and trading volumes tending to be lower. If anything, it’s usually a period of consolidation.
That could change with earnings season, which kicks off next week and may provide the market with some fresh momentum. Until then, hodl on and if you’re sitting on big gains in tech, it might not be a bad idea to lock in some profits.
