S&P 500 is near its all time high. No need to panic?

The S&P 500 has not undergone a correction of more than 2% since reaching its October low last year. This pattern suggests that investors may have succumbed to Fear of Missing Out (FOMO) and engaged in panic buying, particularly due to optimism regarding artificial intelligence (AI).

It is anticipated that investors’ concerns and unease may only arise if a correction exceeding 2% occurs within the current year.

Fibonacci Expansion still indicates a S&P 500 target price of 6118 for the entire bull run. Nevertheless, the S&P 500  may encounter a strong resistance level at the 61.8% Fibonacci level at 5115, potentially leading to a decline to the 50% Fibonacci level at 4805.

Despite the possibility of facing these resistance levels, there is currently no significant shift in the bullish fundamentals that could drive the S&P 500 lower at present.

The near-term pivotal catalyst is the CPI data on March 12, and a potential hotter than expected CPI data may trigger a sell-off.

Our overall outlook for the S&P 500 remains constructive in the long term. However, we are actively monitoring potential short-term bearish catalysts, seeking opportunities for long-term accumulation levels.

Investment Strategy: While certain individual stocks may appear toppish, astute investors might consider investing in S&P 500 ETFs (SPY $SPDR S&P 500 ETF Trust(SPY)$ , IVV $iShares Core S&P 500 ETF(IVV)$ , VOO $Vanguard S&P 500 ETF(VOO)$ ) to capture market returns initially. As the specific stocks undergo corrections later and align with desired prices, the strategic approach involves a relocation to maximise the return – liquidating the S&P 500 ETFs and strategically reallocating into the identified stocks.