A technical indicator suggests a bottom is in but fundamental forecasts sow concern
The stock market has all but stalled this week. The S&P 500’s 200-day moving average has seemingly morphed from magnet to resistor. It’s the summer: NYSE composite volume was the lowest of the year on Thursday, according to Dow Jones data.
The rally, we are told, has been powered by hopes that peak U.S. inflation can help the Federal Reserve be more gentle in its monetary spanking. It has also been propelled by a generally well-received second quarter company earnings season. Oh, and falling oil prices too. Unfortunately, there may be trouble ahead. Emanuel reckons waning global economic growth means next 12-month earnings per share estimates have peaked. They forecast an S&P 500 EPS of $232, compared to current consensus of $244.
“This was only exceeded three times in the past 30 years. Each of the three prior instances was the market bottom. We think this is the fourth instance.” he writes.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'The Bear' Pop-up Coming To DC's Moon Rabbit Next WeekCrave Italian beef? This The Bear pop-up at Moon Rabbit in D.C. will fix you up during a one-night-only pop-up next week.
Read more »
This contrarian investor gave a timely warning for the last big tech top. He now sees the biggest drop of this bear market dead ahead.“It is fascinating to see how closely the 1929-1932 and 2000-2002 bear markets paralleled each other, with almost exactly the same kinds of pullbacks and rebounds. I expect similar behavior for 2022-2025.”
Read more »
Audi announces RS4 Competition UK priceJust 75 examples of the 180mph RS4 Competition are coming to the UK - orders open next month.
Read more »
Bitcoin Reverses CPI-Induced Rally, Drops Below $22KBitcoin has reversed the gains it made since the publication of U.S. July inflation data earlier this month. By godbole17
Read more »