Trend for Position Traders
7/31/20… UPDATE: The S&P 500 closed within striking distance of its highest level since late February thanks to the Federal Reserve’s gargantuan money-printing scheme. The index continues to crawl higher along its bullish 14 EMA with a new immediate support level emerging at 3250.
Last week, the S&P 500 index surged 1.7% on rising volume powered by earnings reports and a dovish Federal Reserve statement. “Whatever it takes for however long it takes” is the Fed’s message to investors. That explains why the U.S. Dollar is tanking and why gold and silver prices are surging. Be sure to tune into this Tuesday’s coaching call for a big update and new actionable ideas.
The lowered bar for corporate earnings in Q2 has helped catapult U.S. stock valuations to extreme levels. So far, an astounding 80% of U.S. companies that have reported earnings have “beaten” analyst earnings estimates thanks to dramatically dumbed-down expectations.
We expect the Fed to continue talking up the financial markets ahead of the 2020 Election. Whether their fraudulent policies will continue to help insulate Wall Street from economic reality is anyone’s guess at this point.
If the Fed’s current historic monetary policies cannot keep the rally intact, then virtually nothing can. If the current Position uptrend on the S&P 500 fails, even with excessive Fed intervention, it could be a sign of major financial pain ahead. While we don’t expect that in the immediate term, it could certainly happen at some point in the future.
America’s financial system is a ticking debt time bomb. While much of the world may view the Federal Reserve as a miracle worker, it’s powers are highly dangerous. When it comes to the Fed, the “cure” is always worse than the “disease.”
The fact that the equity markets are convulsing higher on massive capital infusions forcing investors to weigh the upside from unlimited money printing against the downside from a new great depression is neither a healthy or natural development. It is a sign of great moral hazard in the capital markets at the cost of the bottom 80% of U.S. taxpayers who have historically owned the least of the nation’s assets while bearing the large majority of its debts.
We remain neutral to mildly bullish on the S&P 500.
When another change in the trend of the S&P 500 index is detected, we will alert our members!
7 of the 11 S&P 500 sectors closed in positive territory last week. Tech (XLK +5%) and Real Estate (XLRE +4.2%) were the strongest sector performers of the week.
Our Market Trakker alert system will keep you advised of the current broad U.S. stock market trend. When we detect a change in the major Long-Term trend, our members will be notified by email (and inside The Robinson Report) along with details on how we are responding.
Long-Term Trend for Long-Term Investors
7/31/20… The S&P 500 Long-Term trend is now unconfirmed. While the index is now flirting with a new Long-term uptrend, the index has yet to confirm the trend — at least for now. When our Market Trakker system detects a change in the underlying Long-Term Trend in the S&P 500, this page will be updated and all current members will be alerted by email.
- Market Trakker Charts – Updated Every Weekend
S&P 500 Index – Daily Chart
S&P 500 Index – Long-Term Trend (Monthly) Chart
(Unconfirmed Long-Term trend)
S&P 500 Index ETF (SPY) – Position Trend (Weekly) Chart
(Position Uptrend – Detected 5/31/20)
Updated: 7/31/20S&P 500 Futures Chart
Updates upon refresh during market hours
Percent of S&P 500 Stocks Above 200 DMA
(Measures market participation)
U.S. New Highs-New Lows
(Gauges internal trend momentum)
NYSE Bullish Percentage Index
(Measures market participation)
S&P 500 Index – P/E Ratio
(Current P/E valuation of S&P 500)
Min: 5.31 (Dec 1917)
Max: 123.73 (May 2009)
- Market Trakker Resources
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