How to beat the bulls on forex trade signals
The bulls are on their way back to a major rally, and the odds are against them, analysts say.
The latest data from Thomson Reuters and the CBOE Volatility Index shows that the S&P 500 is back up about 6% since Monday, the day after the U.S. election, with the Nasdaq and Dow up more than 10% each.
The rally has come in spite of the fact that U.N. sanctions on North Korea, which has been crippling its economy for months, are likely to remain in place through at least the end of March.
That would likely result in another record-setting rally, but it’s unclear if it will last.
In the meantime, the bulls are getting more bullish on the S.&:P.
and the Dow.
But the SAC is still not a safe bet on a rally, with analysts noting that while there is evidence of a rebound in China, the country’s stock market is still more than four years behind the rest of the world.
And despite the rally, the SICs price action is not expected to be as strong as in recent years, with a $10.20 gain over the past three days.
“There’s still a big risk of a repeat of the last bull run that followed the election of the Trump administration,” said Michael Green, chief market strategist at U.K.-based investment advisory firm IHS Global Insight.
“In the longer term, it’s very hard to predict that we will see a continuation of the rally in the short-term.”
But the odds of a selloff are growing, as analysts say the SICS is still relatively safe.
The SIC is still in positive territory as of Thursday, and a bearish reading on the index would suggest a sell-off in the next 24 hours, according to Morningstar.
Still, the bull market has made it difficult for Wall Street to move as much as it wanted, and there are plenty of other reasons to be cautious.
A weaker U.