Here is why the SP500 will not hit another high

Despite the weekly rise, last Friday working hours helped forming a strong Price Action signal for a likely turnaround. Technically, the price failed to break the previous peak, and the downgrades from the past few hours formed a bearish pin bar on a weekly chart. From a technical point of view, we have only that, but there are five fundamental reasons, why the new SP500 high is not possible. We should not exclude the possibility of false breakthroughs. Here are the five reasons why I think a new high is hard to achieve in the next two weeks.

1. End of the Month - With the end of the month, big investors will have to allocate some of their capital, and growth over the last four weeks will inevitably lead to profits taking.

2. GDP through the Fed's perspective - Today's GDP report was good, but if we look through the Fed, this is another reason to support high interest rates. A rise in interest rates would lead to a rise in the dollar, and hence deteriorating exports to companies and lower profits. As the SP500 is traded in USD, the purely correlative index will again be pressured.

3. Donald Trump and his speeches over the weekend - An old Wall Street proverb says that bad things happen over the weekend. Following the statistics, Donald Trump's negative-to-market speeches are exactly the weekend, and adding the rising trade war with China, Trump's likelihood to get angry again remains high.

4. Feelings of concern about the war are still keeping investors cautious.

5. Earnings season - Undoubtedly, the reports of the majority of US companies are good, but only so ... A large part of the results are just as much as the forecasts. This time, we did not see a lot of better reports, which would cause investors to rethink their positions. The current results are largely already accumulating in stock prices.

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