S&P 500 Price Forecast – Sock markets continue to meander

Stock market participants had very little to do during the day as we drifted a bit lower awaiting the G 20 meeting. We have at least several days before the Americans and the Chinese disappoint the market, so perhaps people are just simply squaring out positions.
Christopher Lewis
S & P 500 daily chart, June 26, 2019

The S&P 500 sat still during the day with a slightly negative band as traders is starting to worry about the G 20 meeting and the lack of progress that will certainly come of it between the Americans and the Chinese. Because of this, the market should sometime soon start to switch to more of a negative bias, but the question isn’t really whether or not that happens, but when it happens. After all, the Americans and the Chinese have shown absolutely no proclivity to work things out, and that seems to be one of the two major things moving the markets.

S&P 500 Video 26.06.19

The other obviously as the Federal Reserve, as they are more than willing to bow down to Wall Street and cut interest rates as quickly as possible. That would be your driving force to the upside. However, right now we need to get past the G 20 in the initial shock of the obvious happening before markets turn around and start rallying again based upon cheap money. While it makes no sense to think that a slowing economy should drive stocks higher, this is been the way it’s acted for over a decade now, simply reacting to monetary policy and nothing else.

With that being the case, the correlations of all broken down at the same time as well, as stocks, bonds, and precious metals all go higher at the same time. This shows just how distorted the markets have become over the last several years. Nonetheless, you don’t fight the trend.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.