Bearish -The S&P500 is predicted to fall on Corporate Earnings
The S&P index will move down to the 3300 level bottoming out between October - December.
The catalyst for the down move from the current level of 3600 to 3300 is when earnings are released for most large companies. This will start in Mid October.
The Reason for the move down is when the earnings risk surprise is priced in by institutions, this will lead to capital outflow into other asset classes away from equities. Bottom line is that we are in a bear market, with short upside rallies.
If a deep recession seems more likely the stock market might bottom as low as 3000.
So you can either wait and Buy at the bottom, or you can Ride the wave down.
-Caerus.
The catalyst for the down move from the current level of 3600 to 3300 is when earnings are released for most large companies. This will start in Mid October.
The Reason for the move down is when the earnings risk surprise is priced in by institutions, this will lead to capital outflow into other asset classes away from equities. Bottom line is that we are in a bear market, with short upside rallies.
If a deep recession seems more likely the stock market might bottom as low as 3000.
So you can either wait and Buy at the bottom, or you can Ride the wave down.
-Caerus.
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