Chart above is showing every FED intervention and the outcome of the stock index spx price since the Great Financial Crisis. It is obvious now that government intervention is a major source of back stop for stock prices. The difference between now and in 2008/09 is that the FED had pumped a lot more money into the system than before and in turn allowing stock asset prices continue to rise.
Without tapering the intervention the markets will continue to go up. On Friday the close in markets were bullish and spy is in range of reaching back to highs that were first seen in early June 2020. This current uptick in Nasdaq has been a sight to see as FANGs are near or at all time highs. The likelihood that this will end is possible but when is totally unknown to me.
Come Monday if the market continues to hold up I will be avoiding to go short. However since its a option expiration at the monthly this week there will likely be more volatility. This would mean more price movements which is good for day trading or scalping.
Posted Using LeoFinance