Is The stock market right now nothing more than a fed fueled rally?
Well sentiment trader feels that a rally in global equities may be far from over. Many analysts out there seem to be spotting sellers move back in, but one thing is for certain that this market right now is fueled by large monetary stimulus from the central banks and the fed.
While people keep praying for a correction, the market seems to be hitting more fresh highs. Every time we sell off for one or two days, the bulls come right back in.
Just have a look at how strong the S&P chart is right now. Simply amazing! We closed at 1664 on Friday and have not broken the all important channel drawn below.
|fed fueled rally|
Another thing to mention is that institutional activity in the last few days has been to heavily weighted to the buy side.
Before you get excited you must remember that we are in unprecedented territory at the moment (and up in new record highs) so it is a good idea to keep focused and not get too excited. The bear keeps saying we are overbought, but this has been going on for months now!!!
With backing of the FED and central banks, we would assume this rally might continue for a bit longer. Time will tell.
Powered by 123ContactForm | Report abuse