S&P 500 Analysis

S&P 500 Analysis

Last week, the S&P 500 performed well to reach new recovery summits, but ultimately did not. Because the stock markets closed the week softly. Mike Stanley's Mike Wilson explains three arguments for this move and believes it is a healthy correction that will keep the bull market going. “Although there is no clear evidence for this weakness, we would have given three things: first, the sudden increase in covid-19 cases continues. This increase challenges the re-opening of the daily life activities of the US economy. Second, polls suggest that Joe Biden is a very strong leader against President Trump in this year's elections, while Democrats appear to be favorite in congressional races. Finally, for the most preferred parts of the stock market, it reaches the limits of values ​​and some stocks are located in the eye-catching region. " “These should be a correction that creates the opportunity to buy some businesses at lower prices. Given how large and significant impact some of these stocks have on the general index, it may cause the general market to trade lower. In my opinion, there would be a healthy development and a necessary condition for the bull market that started in March to continue at the end. There should be a renewed pause for long-term investors. "