The Federal Reserve reduced its balance sheet by $15.7 billion, $17.9 billion was treasuries.
This reduction leaves $36 billion to be reduced in July out of a planned total of $40 billion.
The correlation between the Fed balance sheet and the S&P 500 has broken down since May. If the correlation resumes, the S&P 500 Index is 5 percent overvalued.
Scenario Analysis For Friday’s Trading Session
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The S&P is currently in a range between 4950 and 5250. After blowout
earnings from Google (GOOG/GOOGL) and excellent earnings from Microsoft
(MSFT) Thursda...
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