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The Market Will Not Go Down Unless..

ByMichele Schneider
Published 06/23/2020, 12:30 AM
Updated 07/09/2023, 06:31 AM

Unless…

  • The death rate from COVID-19 spikes—not the number of cases.
  • The dollar keeps failing while the yuan grows in demand.
  • The civil unrest surges to the point of riots, hence unavoidable disruption.
  • War breaks out in North Korea or Middle East.

Otherwise, the market continues to love the Fed, who has given corporations zero rates and lots of helicopter money. The market loves Trump, who has given corporations virtually no tax bill and little regulation to worry about.

The market loves the government, as they promised Americans another round of stimulus checks.

But, the smart money also knows the market is a tinderbox. Hence, the metals stay strong.

All of this leads to stagflation.

And, the US is now 10th in terms of economic strength.

We are watching the patient (market) on an IV drip, still rallying, but inching closer to its final curtain.

Key Levels

S&P 500 (SPY) Inside day. 312.50 pivotal. 320 big resistance 302 support

Russell 2000 (IWM) 147.20 resistance with support at 140-141

Dow (DIA) 260 support 263 resistance

NASDAQ (QQQ) 240-247.82 range

SPDR® S&P Regional Banking ETF (NYSE:KRE) (Regional Banks) 41.65 resistance 40.00 pivotal, 37.00 major support

VanEck Vectors Semiconductor ETF (NYSE:SMH) (Semiconductors) Inside day, Inside weeks- 139.78 last week’s low-155 resistance

iShares Transportation Average ETF (NYSE:IYT) (Transportation) 158 support 168 resistance

iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) (Biotechnology) 136 support

SPDR® S&P Retail ETF (NYSE:XRT) (Retail) 200-DMA 40.50 support to hold 43.50 resistance

Volatility Index (iPath® Series B S&P 500® VIX Short-Term Futures™ ETN (NYSE:VXX) 34.50-38.50 range

Latest comments

Yet another brilliant and insightful article on Investing.com.
The market is being driven by fed, period.
The market is being driven by youthful optimism and a recovery. The older generation is gloom and Doom normally. Some of the Doom and gloom folks write angrily about the market doing well because they missed out by sitting on the sidelines. They almost root for a fall so they can get in cheaper, or they have lost money on shorts. Anticipating a long decline that never really came. So they are bitter.
the older generation has some experience that younger generations don't, anyone under 40 doesnt know what stagflation even is. inflation alone for that matter.
I'm millenial and I will keep your comments. Let's see what is going to happen from now to summer 2021. Good luck!
your underestimating the younger generation. They are just smarter than the boomers now.
Egypt is on the edge of war with Turkey and ********militia in Libya. Would that affect US stocks negatively?
dont worry nothing will bring the mkt down.
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