New York Stock Exchange awaits correction, hints market structure

Analysts say the months-long rally on the New York Stock Exchange is coming to an end. This is due to the extraordinary bullish mood of investors who are trading for short, but also the impending US presidential election.

trader-magazine.com, newyork

Analysts say the months-long rally on the New York Stock Exchange is coming to an end. This is due to the extraordinary bullish mood of investors who are trading for short, but also the impending US presidential election.

The rally on the New York Stock Exchange has been going on for five months. And that may be one of the reasons why analysts increasingly believe it’s time for a bigger correction. Down, of course. Another factor is the extraordinary bullish mood of short-term investors, so there is a growing temptation now to sell stocks so that they can buy them again at a more profitable price later. Last but not least, we must not forget that there are less than three months left in the US presidential election. The selection of a new White House chief has traditionally meant an increase in nervousness in the markets, which is reflected in the sell-off of stocks.

The Federal Reserve will undoubtedly play a key role in this whole mix of mood and historical experience. After all, it is his policy that has allowed the New York Stock Exchange to slash its March lows and bounce back to the massive growth that continues to this day. If the Fed tries to push the market, and if it succeeds, then the correction may not be as dramatic. It remains to be watched by the Fed’s actions and to try to see from them which way the us central bank’s next policy will go.

 

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