S&P 500 Price Forecast – Sock markets continue to meanderStock 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.
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.
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