In this most recent stock market video analysis and forecast, I’m following up on the June 3rd Video and forecast for June. So far we are seeing everything I expected to see from the June 3rd video: From the S&P-500 and NASDAQ gaining strongly after the S&P’s close above $4200, which was driven by investors’ FOMO (Fear Of Missing Out), to hedge funds who have not kept pace with the benchmark equity index who have been doing some performance chasing, also a massive short squeeze as S&P futures had the largest non-commercial (large speculator) short position in the history of S&P futures (these are largely hedge funds), and just the mom and pop investors who missed most of this rally off the October 2022 market lows, in what is now an 8 month rally.
This has led to the S&P trading above $4400 since. The massive short position in S&P futures has seen 3 weeks of non-stop short covering, but under the surface of what looks like a strong equity market, we’ve also been seeing exactly what I thought we’d see – institutional money quietly selling into price strength, especially since the Federal Reserve paused their rate hike cycle, which was another forecast made in early June. We have 1 week left until the end of June and the end of the second quarter. I think the market and the U.S. and global economies are going to look much different in Q3 of 2023, and more broadly, the second half of the year. I’ll share with you the reasons I believe that based on what we’re seeing now – from 3C signals of money flows in the S&P, NASDAQ, mega-caps and key stocks like Apple, Amazon and other mega-cap tech stocks.
Enjoy!