Expectations currently point to a decline in the Dow and S&P500. Futures trading data also indicates a possibility exists for an additional alternate path to a higher level. On a macro level selective commercial futures trading product positions for the S&P500 from 5/30/23 indicate a potential exists for the index to trend higher, even with the significant volatility that has occurred in 2022 – 2023.
The Dow chart below refers to recent notional turning points relative to 1929. Volatility, sentiment, and futures trading data will need to be monitored closely to see if markets continue to move higher after this near term decline.
Stock chart courtesy of StockCharts.com.
