S&P 500 Forecast: Index Continues to Be Very Choppy – 01 March 2023
I view rallies as potential shorting opportunities, and I am not interested in buying the market at the moment due to the high volatility.
Because of this, I think a lot of people will have to trade short-term charts and look to small movements more than anything else. In addition, there were some negative consumer confidence numbers that came out of the United States, and the Richmond Fed Index was also below expectations. These indicators suggest that the US economy may be slowing down, and as a result, the market may not perform as well as previously anticipated. While some traders may see this as a short-term opportunity for celebration, it is important to note that this has been a pattern for some time. The Federal Reserve has consistently reiterated its plans, and it is unlikely that this will change anytime soon.
As a result of these factors, I believe that it is only a matter of time before the market breaks down. While some may see rallies as potential buying opportunities, I view them as potential shorting opportunities. The current level of volatility is concerning, and it is likely to result in lower prices over time. However, it is worth noting that there is a pervasive belief on Wall Street that the Federal Reserve is there to bail out traders in difficult times. This mentality is not sustainable, and when the market finally breaks, it will likely be in a spectacular fashion.
With all of this, while the market may continue to exhibit erratic behavior in the short term, it is unlikely that we will see a sustained upward trend without a significant change in fundamentals. I view rallies as potential shorting opportunities, and I am not interested in buying the market at the moment due to the high volatility. The pervasive belief that the Federal Reserve is there to bail out traders is not sustainable, and when the market eventually breaks, it will be in a dramatic fashion. The breakdown could be massive, but in the meantime, its likely that we will see a lot of confusion.
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