This is a look at the S&P 500 on the weekly chart. So things are not happening very quickly here, there is no rush, but when they do it can be quite dramatic. The movements of this chart have wide ranging effects on the World economy. And in the last decade the World economy has been growing at an impressive pace, and all the stock markets around the World have exploded due to an unprecedented amount of fiscal stimulus from the Central Banks (mainly UK, EU and Japan). This takes us to present day, when there are noises from all around that the World economy is slowing down - Germany is almost in recession, Chinas numbers are hit and miss with the trade war with the US. The EU numbers are not in a great state either, so there is not an incredible amount of exuberance in the market.
Recently the central banks have started to decrease the stimulus and increase the interest rates - and the markets have responded like a junkie when you take his "stash" away, with a painful withdrawal effect.
So now the question is: "Is now the time to be breaking the All-Time-High"? This is the question we will be able to answer in the next weeks, so we should be hoping for the best, but being very careful to protect our assets in these crucial times.
Recently the central banks have started to decrease the stimulus and increase the interest rates - and the markets have responded like a junkie when you take his "stash" away, with a painful withdrawal effect.
So now the question is: "Is now the time to be breaking the All-Time-High"? This is the question we will be able to answer in the next weeks, so we should be hoping for the best, but being very careful to protect our assets in these crucial times.