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- Market recovery is not fundamental. We expect a correction after the strong rally
Market recovery is not fundamental. We expect a correction after the strong rally
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Loading...According to some Wall Street analysts, 18% rally on S&P500 is not fundamental.
Shares are recovering on the background of a wave of growth concerns and revenue revisions from Wall Street. In fact, as the S & P500 rises again, the forecast for first quarter profit growth for S&P500 companies became negative, drastically reduced by more than 3% growth expected in December. While GDP growth in the US in the first quarter was reduced below 2%.
After the worst December since the Great Depression, the S & P500 enjoyed its best January for more than 30 years and is ready to finish February with a big boost. Many have attributed the increasing optimism of a deal with China and the more patient tightening approach of Federal Reserve. However growth expectations have come to a halt, and some economic indicators point to a number of weaknesses.
We see some signals for correction of key US stocks, while major US market indices have reached levels of resistance. A short-term correction is possible.
Trader Georgi Bozhidarov Read more:
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