If you are one of those who stamp with their feet and shout the market is “fabricated” and the Fed is the only reason for market growth, you may have some problems. There is nothing more wrong that such point of view.
The whole problem centers on expectations. Many analysts suggested that S&P500 index will reach 1525 level at the end of the year. Now the Federal Reserve is doing everything to support the economy. But this cannot be reason for long-term highs.
If yet in June the technical indicators were hinting at the new highs and actually, that have happened, the next question is: if we are already at new maxima, what makes the readings grow higher?
Leading experts think that the situation with short-term auctions is very appealing and potentially, the shares may demonstrate a significant acceleration. Such possibility adds optimism to the whole picture.
But economists were telling for a few weeks that lower shore positions or reverse auction will result in bullish market.
Let us carefully examine this chart. Higher total short interest usually is indicative of market problems while lower short interest shows that bulls take everything under their control.
Thus, we have all conditions for bullish market.
