What Will Happen If S&P 500 Doesn't Hit A New High In 2023? Market Strategist Explains

Charlie Bilello, Chief Market Strategist at CPIWealth, said if the S&P 500 index doesn't hit a new all-time high this year, it would create a record of sorts.

"If the S&P 500 fails to hit a new all-time high in 2023 it would be the first year since 2012 without at least 1 all-time high," Bilello tweeted.

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Price Action: The index hit a closing high of 4,179.76 in early February after which it has been on a downtrend, dragged by strong economic data, higher-than-expected inflation and a tight labor market.

The downtrend accentuated further on Tuesday for the S&P 500, which, along with other major Wall Street indices, lost over 1% after Federal Reserve Chair Jerome Powell indicated in his testimony before Congress that the central bank would be prepared to increase the pace of rate hikes if faster tightening seem to be warranted. The SPDR S&P 500 ETF Trust SPY closed 1.53% lower while the Invesco QQQ Trust Series 1 QQQ lost 1.23%.

Following Tuesday's sell-off, the year-to-date return of the index currently stands at just 4.24%.

Bilello also cited an earlier poll he conducted which asks when will the S&P 500 hit a new all-time high again. Interestingly, over 40% of participants believed the index would hit a new high only in 2024.

Options Data: Options expiring on March 31 indicate the index has a stiff resistance at the 4,030 level, which itself is below this year's high attained in February. Strong support comes in at the 3,950 level as indicated by open interest accumulation on the out-of-the-money Put strike.

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