S&P 500, daily time frame:
There are new highs available for the US market.
It is moving upwards, but it lacks strength.
There is only one reason – the huge excess liquidity that the Fed is pumping into the market in the hope of strengthening economic growth. The goal is good, but the inflow of liquidity can not completely solve all the problems. Consumer demand can not grow only on loans. Therefore, the higher the prices, the more inadequate the market growth is.
In this case, a strong correction in the market is possible.
In terms of news background, we cannot expect anything significant this week.
We'll continue to monitor how things will unfold.
The material has been provided by InstaForex Company - www.instaforex.com