S&P 500 – Our opinion.

The S&P500 is the most followed stock index in the world, which is not surprising because it represents the largest 500 companies in the world.

This index, like many other major indexes, is in negative territory, something that has happened in recent weeks due to a multitude of factors. One of the main ones is inflation, which has been rising in recent months and has become a focal point in the Central Banks’ statements.

This rise in inflation has forced many Central Banks to raise their key interest rates, and end their asset purchase programs. As a consequence, liquidity in the economy is reduced.

Our view, at least in the short term, is of a drop by the X2 zone, with the possibility of a short-selling by the X1 zone.

We believe that due to a lack of liquidity and risk aversion, this bear market phase is set to continue, especially as inflation continues to rise. And the current geopolitical conditions appear to have no end in sight.

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