The Stock Market Entering Period Of Risk

Loading...
Loading...

The stock market was down last week in what amounted to a week of choppy price action. The S&P 500 (SPX) closed at 2438, just 4 points lower on the week.

Oil’s plunge continued below $43 on Wednesday, which led to some downside in equities. Later in the week, the release of the Senate’s healthcare proposal led to a further push down. Throughout the week, various Federal Reserve officials offered what amounted to a mixed economic views and very conflicting attitudes about interest rate hikes. William Dudley noted that the US economic expansion still had a long way to go, while Eric Rosengren acknowledged that low rates may pose risks to the economy. Jim Bullard later opined that it may be time to perhaps pause the rate hikes.

For this week, our projection is for the SPX to continue to trade higher early in the week, as it entered a new short-term rising cycle, represented by the half circles (Cycle Brackets) on the bottom of the accompanied chart. However, the market will enter a period of risk either late this week or early next week. This risk will increase significantly as we move into July and August.

Watch the askSlim Market Week for more a more detailed look at my short-term view on the SPX for the coming week. 

Loading...
Loading...
Posted In: OpinionTrading IdeasGeneralcontributor
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...