S&P 500; US Indexes Fundamental Daily Forecast- Only Rumors of Yellen’s Removal, North Korea Will Derail the Bull Market

The major U.S. stock indexes spiked higher early Monday as investors reacted to the momentum created by last quarter’s strong performance. A bullish outlook for the economy and President Trump’s pro-business tax reform package are also creating a euphoric atmosphere.

The E-mini Dow Jones Industrial Average and E-mini S&P 500 Index futures contracts posted all-time highs. The E-mini NASDAQ-100 Index is trading slightly below its all-time high.

U.S. stock traders are acting like there are no major concerns at this time. They are absorbing the strong possibility of a Fed rate hike in December. They believe Fed Chair Janet Yellen when she says the economy is improving. Stock investors like the relatively low rates and inflation levels.

Stock investors have shown they don’t care if health reform is passed. They seem to like President Trump’s tax reform plan although there is likely to be further debate before its finalized. Trump and the Democrats avoided a government shutdown in September that could’ve been a major issue.

Everything is rosy as reflected by the VIX which is near historical lows.

The wildcard, however, remains North Korea and it appears negotiations may be going on to quash this situation.

So at this time, the trend is your friend and likely to continue until something happens to stop the buying. If it’s not North Korea then perhaps rumors that Federal Reserve Chair Janet Yellen will be replaced will cause investors to pause and take a little off the top.