As of yesterday's trading session, the S&P 500 rose above 20% from the October 2022 low, a common trigger to believe that the bear market is over. By the way, according to Barron's, the decline lasted 248 trading days and was the longest since 1948.
To a large extent, the rise in the S&P 500 index, which ended the bear market, was due to the AI-related boom:
→ NVDA's share price is up about 170%.
→ META's share price is up about 110%.
→ MSFT's share price is up about 40%.
We also draw your attention to the action of the TSLA share price. It has risen by 115% since the beginning of the year, the bulls are approaching the upper limit (1) of the descending channel, which has been in effect since the fall of 2021. Also, the price of TSLA is fixed above the level of USD 215 per share, which previously served as both important resistance and support.
The bullish momentum this week was helped by the information that Tesla sent out a document to its partners, which reported the planned production volume of Cybertrack in the amount of 375k units per year — more than previously expected by Wall Street analysts. The expected product may go on sale at the end of the Q3.
In premarket trading, TSLA's share price hit USD 245 today, although the WSJ survey puts the average TSLA price predicted by analysts at the end of 2023 at around USD 200. This discrepancy can be taken as an argument that the market is overheating and suggesting that TSLA's share price is vulnerable to a pullback.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.