There is disconnect in the markets between strong fundamentals and weaker valuations , and it’s being driven by both negative real and fake news.
$DIA, $SPY, $QQQ, $RUTX
The global head of macro quantitative and derivatives research at JPMorgan, is among the analysts who published a year-ahead outlook on Friday with an expected Y 2019 target of 3,100 on the S&P 500 Index (SPY) implying a gain of about 18% from current marks. The latest sell-off has overpriced the risk of recession.
The benchmark stock index sank 4.6% last week, to 2,633 points, its biggest decliner since March, and is down 1.5% YTD.
In the past 3 weeks, Us stocks have swung between between gains and losses of at least 3%, volatility not seen such the global financial crisis a decade ago.
“To some extent, we trace the disconnect between negative sentiment and macroeconomic reality to the reinforcing feedback loop of real and fake negative news,” the analyst wrote.
There are a lot of factors at play
“Domestic political opposition may have an interest to paint a negative economic picture, individual market analysts gain more visibility and coverage with negative calls, and foreign adversaries amplify a negative news cycle in order to foster divisions and erode confidence in financial markets and the economy,” the strategists wrote.
HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 7 December 2018
|Date Symbol Price Technical Analysis Support & Resistance|
7 December 2018 QQQ 161.38 Bearish (-0.38)158.37 – 162.80
7 December 2018 DIA 244.31 Bearish (-0.31) 242.81 – 244.44
7 December 2018 SPY 263.57 Bearish (-0.30) 263.43 – 269.96
Have a terrific weekend