Thursday, March 22, 2018

S P 500 goes on his last journey

S P 500 goes on his last journey?

US stock index S P 500 rising again. Yet some two weeks ago in the investment community it was a real hysteria caused by the sharp drop in the index of 10% and an increase in volatility, but today he again stormed to new heights.

The most common index of the American stock market showed the local minima October 15, after which began quite quickly recover lost ground. As a result, the first week after the fall was the best in the last few years.

Even then, it could be assumed that history repeats itself, and for the umpteenth time. However, the news flow was very negative and did not contribute to buying the majority of investors. They simply was terrible. In it lies the trick of major players, and they are doing a trick that almost all the time, without changing anything.

It looks like this: after a long period of growth at some point begins a dynamic reduction, and usually it ends just when the panic among the crowd reaches its climax. In parallel, there is an active brainwashing through the media: they are literally full of scary headlines.

After stopping the index begins to gradually rise, the first movement are very ornate character. Next it is easier. Before the opening of the US session, futures on the index decreases, respectively, the opening occurs in a negative way. The crowd thinks spadenie continues, and then, at the last hour of trading, the index closes unexpectedly increase. This behavior can be observed for several days, after which some day the opening of the substantive session takes place already breaking up and growth accelerates.

It is worth noting that almost every time as it approaches the top of the index for the various indicators began to deteriorate. It is about the spread between Treasuries and "junk bonds", The fall of quotations of copper and other related factors. For example, you can take "People light" - gold to silver. It is believed that if the index is above 70 points, the market is no good waiting. So it was before the last, by the way, the strongest decline in over a sufficiently long period of time.

As for the current recovery of the US market, it is actually no different from the previous ones, even superficially. This is clearly seen in the graph. The ratio of gold and silver, and all this time looks wild. Today, it exceeded the mark of 76. This year, this has not exactly been. Thus, we can conclude that the index of S P 500 going back to the historical peak, and then make an even stronger drop than earlier this year. If to talk about the ultimate goal of growth of the index, the most clearly looks like the mark of 2050 points, but as a rule, turn the top starts with a long bumpy, to recognize where something is very difficult.



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