Markets don't go up in a straight line. Why can EXPECT A SHORT TERM CORRECTION in the markets

Jul 9 18:23

Our analyst Jessica Amir was interviewed by the Australian Associated Press) and she explains why you can EXPECT A SHORT TERM CORRECTION in markets, specifically why the $S&P 500 Index (.SPX.US)$ is at risk of a short-term pullback.

The reasons?

US Earnings experienced its biggest fall since 2020. While PEs are above average. Meaning, folks are paying above average for the S&P500, with negative earnings.
China's economy could be in strife. See my prior notes
The SPX technical indicators suggest a pullback may be looming (MAs, MACD).
The SPX 15-day SMA crossed under the 30-day. The last 6 times this occurred over the last 2 years, the S&P500 $S&P 500 Index (.SPX.US)$ fell 7% on average. See the chart below.
But why could the correction be short-lived? There is an increasing amount of capital being invested in the S&500 $S&P 500 Index(.SPX.US)$, as interest rates futures expect The Fed to cut rates in early 2024.
Most of the ETF flows over the last 12 months into the world's biggest ETF, iShares S&P500 ETF $iShares Core S&P 500 ETF(IVV.US)$, have taken place over the last 4 weeks. This tells you most investors are bullish. Yep, that's right. 60% of the money that's flowed into $iShares Core S&P 500 ETF (IVV.US)$ over the last 1 year, flowed into the ETF over the last 4 weeks. WOW!

$Invesco QQQ Trust(QQQ.US)$

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more

Markets don't go up in a straight line. Why can EXPECT A SHORT TERM CORRECTION in the markets

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