There’s no news behind it, just a market that’s struggling to handicap US politics.
S&P 500 trims loss to 5 points What had been a 21 point loss has now just 5 points as the market shrugs off the failure of healthcare reform.
Some parts of the market are losing faith in Trump’s administration ; others are still optimistic on taxes and regulation.
A theme we’ve seen over and over is that international investors are skeptical but US investors are more immune to the dysfunction in Washington and can look past it.
That’s an impressive turnaround in two hours.
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As the stock market sags, it might be time to turn bullish
Either way, once wave (iv) completes, wave (v) should provide us with a 200-point rally to the 2,500 region.
For the past few weeks, we have been looking for the S&P 500 SPX, -0.24% to drop to the 2,335 region.
For years, I have been strongly urging those willing to listen that the stock market was setting up to exceed 2,500 in the S&P 500 Index before a major correction takes hold.
And, based upon that perspective, I am looking for a rally to take us to the 2,500 region on the S&P 500 by summer.
See charts illustrating the wave counts on the S&P 500.
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“Much of the stock market rally since Election Day appeared to be based on the expectation that the president’s legislative agenda would face smooth sailing,” said Mark Hamrick, senior economic analyst at Bankrate.com.
1 story.”Kinahan, however, said the defeat of the GOP health care bill does not signal a death knell for the Trump rally.
Tax cuts or tax reform will likely still happen even though they may be more difficult, he says.
Even so, the moon shot for stock prices seen since early November was already due for a time-out before these latest developments.”
The bill’s withdrawal triggered concerns that the market bounce after the election of Trump in November on the so-called “Trumpflation trade” may be headed for a retreat.
collected by :Dicson Walt