As S&P500 is mother of all world indices it is necessary to have a look at it. It has hit all time highs 40 times in this uptrend. Fed has mounted a tiger and it finds difficult to get off. Someday it has to get off. For a bubble to burst it is necessary to get it inflated first. This is what is currently happening.
If you compare the current chart to the index chart of late 1920’s, there is a remarkable similarity in both and we all know about the economic depression that followed. We are again on the verge of something similar.
Investors are advised to reduce their long positions. 10 DMA is at 1787.
S&P500 Futures 1801
The latest up move is near to completion (Target 1805) and correction may follow.
