The March Towards 3000 For The S&P
A long time coming or a trend overdone? 3000 seems to be the phycological number that is drawing price towards it. At the time of writing each tick higher in a new record high, only 18 more points and we have reached the magical number.
It seems to be a perfect cocktail, the FED looking to cut rates and Trump agreeing a trade truce with China. What can potentially go wrong? We all know the drama Trump is creating with China, one minute the deal is off and they are getting no where, few hours later he tweets saying “Trade Deal going extremely well”, if we see another breakdown in communication between the two giants this would seriously hurt the S&P. Factor in that when the trade deal is moving forward this brings about more confidence to business’s and consumers, giving the Dollar a solid bid (Less reason for the FED to cut) so it seems that Trump may be in a bit of a predicament, get the trade deal through and it pushes the S&P higher but the FED MAY not look to cut and that is a negative for the S&P500.
Looking at the daily below, price is marching firmly higher towards 3000 with nothing to stop it. I personally feel we reach it this week and back off from just the shear magnitude of the landmark. Maybe a good profit taking area as well..?...