Published November 18, 2022
The folks at Delta have provided a good succinct overview of the state of the stock market and what needs to happen for a sustainable uptrend to occur. Here’s what they have to say:
“Since mid-October, the Bull has shown some life. The S&P 500 is up by about 5% from the closing low on October 12. Bullish drivers of the market include:
- An expectation for typical seasonal strength in November and December
- A perfect history of 18 – 0 of positive S&P 500 performance from November through April in mid-term elections years dating back to 1950
- Mid-term elections that deliver a divided U.S. Congress which is expected to reduce the likelihood of any new taxes and major fiscal expenditures
- Earnings reports are not as bad as feared
- Maybe the Fed will stop raising rates sooner rather than later