The S&P 500 looks like it wants to go up, for now

Today the market ended lower, at about 3900. I don't think it will go lower next week. This was to opportunity to buy more.
I know it is a long-shot, but the fact that the P/E ratio is still not the highest it has ever been and that the Stimmy checks I think will keep coming, when the economic outlook will look "better" (many people will have got the vaccine and some/many restrictions will be lifted for the summer), the Fed will have no choice but to back out. And the market will panic. No Fed, no rally.
So I think it is likely that we will see a rally to the 4560-4640 and then a sharp drop. It can be sharper then in the chart because of the weak hands in the market.

Commentaire:

The support from 2019 is still holding, but I don't know for how long. I don't want to guess. So I say this: tight stops on your limit buys.
Take care.