About the S&P 500:
The S&P 500, also called the SPX, is an American stock market index. More precisely, and as indicated by its name, it takes into account the 500 largest companies quoted on the stock markets in the United States. Its name also comes from the company Standard and Poor’s, one of the three largest financial ratings agencies.
The S&P 500 index was created in 1950 and is now the most representative index of the American stock markets, arguably even more so than the Dow Jones. Composed of numerous companies, it takes into account the stock market capitalisation of each of these companies. This index provides us with a good overall representation of the most flourishing activity sectors in the United States.
Historical analysis of the rate of the S&P 500:
The chart analysis of the last ten years of the S&P 500 rate is very interesting in itself as it also portrays the overall evolution of the American economy during this time. Since 2005 we can observe two major rising periods.
The first rising trend enabled the S&P 500 to attain a peak of 1557 points in October 2007 after more than two years of progression. Following this period we observe a corrective fall that lasted nearly two years and brought the rate of the S&P 500 down to its lowest historical point of 683 points in March 2009.
Finally, and since this negative episode, the S&P 500 has again been following a strong rising trend which continues even now. The rate of this index is still holding at above 2000 points.
Probable movements of the S&P 500:
Concerning the stock market charts detailed above, there is a great possibility that the S&P 500 index continues on its rising trend which would make long term positions judicious. But it is also important to remain alert to a possible negative correction that could be quite pronounced.
The micro-movements also enable CFD traders to make profits on shorter trading periods. In all cases, the American economic health and related decisions made by the government will have a strong influence on its rate.