S&P 500 Weekly Price Forecast – Stock markets rally again for the weekStock markets rallied again for the week as they got their monetary methadone out of the Federal Reserve, or at least promises of receiving it.
The S&P 500 got a bit of a boost during the week as the Federal Reserve has suggested that they are more than willing to come in and ease monetary policy if necessary, something that market participants loved hearing. They are now starting to price in interest rate cuts for the rest of the year, at least a couple of them, and therefore cheap money equals strong stocks. Ultimately, I think at this point we are eventually going to go looking towards the 3000 level, but it doesn’t mean that it’s going to be easy. There are a multitude of problems out there, but Vice President Mike Pence suggested that he was hearing good things coming out of the potential US/China talks at the G 20 in Buenos Aires.
S&P 500 Video 24.06.19
That being said, it gave a bit of a boost to the market later in the day but obviously we are at extended levels. This is a market that could continue to be very noisy, and we have to worry about the US/China trade talks as there seems to be a new headline every couple of days. Beyond that, economic numbers are relatively thin but for the last decade it’s been all about what the Federal Reserve is doing and whether or not they will give Wall Street the cheap money it needs. So far it looks like they are willing to play ball and the most recent low is much higher so it looks like we are probably going to go higher. Overall, I remain bullish but certainly concerned at this point.
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