The SP 500 index has been growing for 3 weeks, without a significant pullback, however, a number of factors indicate a possible market reversal in the near future and here's why -
-there is no progress in another round of incentives,
- statements by Prime Minister Boris Johnson that a deal with Brussels is becoming less and less likely,
- stocks reach new heights, even when more and more restrictions are used, and the virus infects more and more people around the world, which is absolutely not logical and makes traders take profits in anticipation of corrections.
- The coming week is likely to see a weakening economic recovery, weaker retail sales, lower manufacturing figures, possibly more layoffs related to restrictions on restaurant and bar operations.
Additional reasons for the high volatility and growth of the index:
Vaccinations will begin in the United States on December 15-16 as the COVID-19 vaccine has received emergency use approval from the US FDA.
The Fed will hold its last meeting on December 15-16. The Fed may announce additional steps to bolster the economy if Washington stays inactive in adopting a second round of stimulus.
The economic recovery in China likely heralds a similar recovery in the United States after mass vaccinations and restrictions are lifted and, as a result, the index should be expected to rise throughout 2021.
The long term view of the index is bullish. Meanwhile, the next two weeks should expect high volatility, take into account not only technical analysis, but primarily the fundamental factors described above and look for a long entry point.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Хочешь хороших денег – умей выжидать
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.