Risk Assets Extending Higher. Are Negative Rates Ahead?

Risk Assets Extending Higher. Are Negative Rates Ahead? The S&P500 and risk assets continue to extend higher as the daily MACD has registered such high levels only twice before.  The S&P 500 can continue to extend higher as it bounces against overhead resistance in the 2,800 to 2,880 level. The improving sentiment and valuation multiples can be tied directly to the Federal Reserve’s capitulation on further policy rate hikes.  But TRI believes, the Federal Reserve does not control the business cycle, and the headwinds for slower growth into early 2020 cannot be undone merely by the Fed moving to the sidelines. TRI senses the powers that be are beginning to float trial balloons of what is likely coming down the pipeline in North America…  while TRI is likely early on this call of negative policy rates… don’t be surprised when you pay banks to hold your deposits. Market Trends The S&P 500 continues to push higher, even after a bite size daily cycle low of Feb 8. Indications are for higher prices, but caution is warranted as the easy part is behind us. If the daily cycle fails to make new highs above 2.05% and the daily cycle becomes left-translated,…

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