Very bullish charts, volatility implosion, strong buying, but it looks so much like the last mile, the last hurrah, until the next major rally - if any - of this long term Bull market, begins post-midterm elections into the Xmas/January seasonal bullishness.
SPX daily chart clearly shows this ramp up since last week and all indications show more upside potential. But, beware of getting complacent and taking it for granted because the next decline is due and it could be as strong as that one in January
If SPX 2805 is taken out then there is a high probability this market can spike up to the previous record highs. Most likely, this is BUY the pre-earnings hype and then SELL the actual earnings.
This guy has it right:
— Scott Minerd (@ScottMinerd) July 9, 2018
Minerd is far from the only one suggesting that markets may be underestimating the potential for a clash between the U.S. and its trade partners across the globe to have harmful effects on global economies.
However, some worry that average investors may be underestimating the potential for a protracted China-U.S. spat to deliver a more significant and blow to the domestic economy.
Morgan Stanley Wealth Management recently wrote in a recent report that analysis suggesting that the impact of trade clashes will be de minimus don’t fully account for the “risks associated with America’s increasingly aggressive position on trade,” Ryan Vlastelica noted in an article last week.
To be sure, it is also not the only ominous call for Minerd. Back in March, he warned that as the economy approaches full employment, generating wage pressures, the Federal Reserve will ratchet up interest rates, slamming debt-bloated firms that added leverage during periods of ultralow rates.