Will the SP500 create a new record high for 2019? Many are betting on it but a new record low will certainly put a lot of doubt and fear into the mix. If the markets are on the bearish side already then there is no way the trend line will hold.
Sooner or later the record high for the Mini SP500 will be in, if it hasn’t already done so, July 15th at the 3023 price level.
A new record high could come but at this time its a flip of the coin when a substantial bearish move starts to take place.
In the end, it will boil down to the US elections and who gets into power. Election campaigning is in full swing and if President Trump is set to lose then the markets can turn into a massive “Sell-Off”.
Inauguration in January 2021 is when the new president and his crew take control and after that, the markets could soar again.
This all coincides very well with the solar cycles as the new president in 2021 will have solar Cycle 25 at his back! Until then solar cycle 24 and solar cycle 25 will mix with solar cycle 24 eventually disappearing never to be seen again.
The Gold/SP500 ratio is about as expensive as I have seen it at 2.1. It takes 2.1 gold ounces to buy one unit of the SP500 and we need that number to compress in the months and years ahead. Record cheap is when it only takes .75 of a Troy gold ounce to buy a unit of the SP500.