Equities Forecast 1Q-2020: The Trend is Your Friend Until It's Not
(MENAFN- DailyFX) The Trend is Your Friend Until It's Not (Which May or May Not Be Soon)US S & P 500
The market has given reasons over the past year for why it might be ready to top and drop, but throughout 2019 there were only moments when price action hinted that a trend-turn might be possible. 'Might be' – that is the key. There could be reasons, but price needs to corroborate those reasons. Whether it's a fundamental factor like historical extremes in valuations (which can go on for a while, as we have seen) or a technical consideration such as eroding breadth (i.e. small caps severely lagging vs large caps or FAANG no longer leading), until the tide turns there isn't a great risk/reward in betting against rising prices.
S & P 500 Weekly Chart (Chart 4)
Recommended by Paul Robinson Get our Comprehensive Q1-2020 Equities Forecast Get My Guide
---Written by Paul Robinson, Market Analyst You can follow Paul on Twitter at @PaulRobinsonFX
MENAFN0101202000760000ID1099495004
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.