Going into Friday, I was still sticking to the bullish S&P 500 outlook. As the index declined, are the prospects of higher prices gone? Not at all, and today’s analysis will examine the signs that still lean bullish despite the precarious technology position.
Despite the S&P 500 closing below the line connecting the early June highs, continued unemployment claims rising on the state level (don’t forget about those rising ones under the federal pandemic programs either), the fate of the $600 weekly addition to unemployment benefits expiring at the end of July, or the U.S. – China confrontations.
On Thursday, I’ve laid out the market’s sensitivities this way:
(…) as strange as it might sound, the stock market isn’t about the real economy struggles these weeks. All eyes are on the stimulus and vaccine hopes (whatever one imagines under the latter term), not on the corona case panic and hyped