The S&P 500 surpasses 3,300 for the first time yesterday
The big question in markets is whether or not we are going to see a retracement/correction in the rampaging run in equities any time soon.
This week, the US-China trade deal signing went off without a hitch and so far bank earnings have been better-than-expected, helping to fuel the run higher in US stocks.
As mentioned yesterday, there is seemingly a lack of negative catalysts to derail sentiment at the moment and we may not get one for quite a while still. Earnings will be the obvious one to look at but key tech stocks will only be reporting on the week of 27th January.
As such, barring any major hiccups, investors may still keep the party going - slowly and more steadily - up until the end of the month.
The US-China trade deal was a potential sell-the-fact play but instead, investors are using it as a platform as seen over the past few days.
In the bigger picture, Trump will want to fuel sentiment in the equities market as this is election year and the fact that global central banks are keeping such loose monetary policies - and flooding the market with liquidity - should keep the party going strong.
There will be a couple of breaks in between to catch a breath or two and perhaps we won't see gains similar to last year, but this undoubtedly continues to be a dip-buying market.
What are your thoughts on the US stock market at the moment? When do you think the next retracement/correction is going to happen and what may cause it?
