As the S&P 500 hits another record on Monday, it is rising ever closer to the banner 2,000 level. And with few worries on investors' horizons, many traders are expecting the market to reach that millennial milestone this week.
Thursday and Friday both brought good news to U.S. investors. On Thursday, the European Central Bank announced a raft of stimulative measures, satisfying investors like David Tepper, who worried about the consequences of ECB inaction. And on Friday, the employment report showed that 217,000 jobs were created in May according to the nonfarm payrolls metric, showing that job growth continues.
On Monday morning, stocks continued their now-routine practice of setting all-time highs. And currently, the S&P is trading just about 2 percentage points from 2,000.
Surveying the jobs report and the ECB, trader Anthony Grisanti concludes that "with this kind of positive news from both sides of the pond, and the fact that there are very few headlines in sight for the market this week, I see more records being set and a market that is poised to reach 2,000."
Yet for others, the lack of critical data releases this week means that the S&P is set to tread water.
"The technicals are reaching overbought conditions after this 5 percent rally," said Rich Ilczyszyn of IITrader. "I believe we go a bit sideway, and will need a new catalyst to break all-time highs. My institutional clients are booking profits and hedging downside risk here."
And some traders have become downright bearish.
"I feel the 50-day moving average test of 1881 (a 3 percent retracement) is happening before the S&P 500 '2000' balloons are dropped from the ceiling," wrote Jeff Kilburg of KKM Financial. "What's the catalyst? Great trillion-dollar question, but this quiet week of data will not bring us a 2.5 percent further melt-up to 2000."