S&P 500: This Could Be A Suicidal Attempt, While Bulls Look Aggressive

When I wrote my last analysis I had sensed the wobbling S&P 500 could try to test fresh highs amid growing indecisiveness among the investors, due to uncertainty over the parameters to map the global economic recovery.

Undoubtedly, the majority of the traders find the recent job data reflects the changing economic dimensions but the growing financial debts in order to provide financial stimulus seem to be a step towards the next recessionary phase. While gold futures are still showing strength that indicates a major breakout in gold, amid growing weakness on the economic front all over the world.

The bullish move of equity indices does not reflect the real strength of economic fundaments at that time. This move could only be based upon mere hopes for expected speedy recovery in the global economy.

Undoubtedly, some companies have generated good profits but that does not ensure that their future profits will continue to remain on the positive side, especially while the arrival of the third wave of Covid-19 has been confirmed.

Now, the question is whether the current rebound is sustainable in the short to medium term, but it does look that way. I find that the current global situation could not improve rapidly as most of the Asian countries are still under the threat of the third wave of Covid-19 while they are still much behind in the complete vaccination of their citizens.

The S&P 500 futures have finally attempted a move above 4222 that has pushed the S&P 500 futures inside a trapping zone; where this move could prove to be a suicidal move for the bulls. I find that the Covid-generated investors could buy anything at any price and even at any stage that could lead to the next market crash shortly.

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