Banks expect the stock market to fall in the near the future
Morgan Stanley and Bank of America experts warn that in the stock market may go down in the near future. About it signals that the prices of almost all the stocks included in the S & P 500 (92%) are at a level above their 200-day moving average. According to historical records, this foreshadows a decline in short term. A decline in stock exchanges may occur over the next 5 days. Practice has shown that in such conditions it is usually comes within 5 days, as well as in the next 1 and 3 months, notes Mike Wilson, leading stock market strategist at Morgan Stanley. In confirmation, he cites statistics for the past 30 years. Bank of America analysts agree with this, pointing out that overwhelming majority of S&P 500 stocks exceeded 200-day a moving average is a rare occurrence in itself, which was observed only 5 times (if we consider the weekly statistics). IN In 4 cases out of 5, the United States was in recession.