Two Different Market Mechanics Driving The Stock Market In Opposite Directions
Portfolio Pulse from The Arora Report
The stock market is being pulled in opposite directions due to two different Wall Street mechanics: quarter end window dressing and quarter end rebalancing. The former involves money managers buying the best performing stocks, causing them to run up even more, while the latter involves selling stocks to buy bonds, pushing down stocks. The SPDR S&P 500 ETF Trust (NYSE:SPY) has pulled back to the top band of the top support/resistance zone. Economic data continues to be strong, with durable orders and durable goods ex-transportation exceeding consensus. Bitcoin (CRYPTO: BTC) is range bound.
June 27, 2023 | 5:41 pm
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NEUTRAL IMPACT
Bitcoin (CRYPTO: BTC) is range bound.
The article mentions that Bitcoin is range bound, indicating that it is currently stable and not experiencing significant price movements.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (NYSE:SPY) has pulled back to the top band of the top support/resistance zone due to quarter end window dressing and rebalancing.
The quarter end window dressing and rebalancing are causing fluctuations in the stock market, impacting the SPY. However, the direction of the impact is uncertain due to the opposing forces.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80