S&P 9000 By 2028? | Sven Henrich

The case can be made. But how probable is it?

Happy Fathers, Day!

Well, the markets are back at all-time highs and central banks around the world are increasingly talking of interest rate cuts...or actually making them.

Will that take asset prices even higher from here?

Are we in a new golden era for stocks?

To find out what the technicals are telling us, as well as to dig into the macro side as well, we're fortunate to speak today with Sven Henrich, technical analyst and publisher of NorthmanTrader.com.

Sven thinks we are at an important juncture, technically-speaking.

Either a material correction is going to happen...or we're at the start of a much bigger bull run than we've seen so far.

One potentially big enough to send the S&P to 9000 by 2028(!)

For a walkthrough of the latest charts, click here or on the image below:

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Adam’s Notes: Sven Henrich (recorded 6.13.24)

EXECUTIVE SUMMARY

• Diverging economic conditions are creating bifurcation in the economy & society, leading to disparate outcomes for different sectors and groups. This bifurcation extends to social developments, reflecting broader societal splits heavily influenced by central banks' monetary policies. These policies also contribute to a more polarized political landscape. Sven describes the current situation as unprecedented.

• He notes the S&P 500's recent rally, characterized by a cup and handle pattern that has met the 5400 target he foresaw back in February. Will the rally continue? Sven observes a concerning weekly negative divergence. He emphasizes the unhealthy dominance of large-cap tech companies like Apple and Nvidia, which skew the S&P 500's performance, while equal-weighted indices and broader market indicators show much weaker performance.

• Sven highlights the VIX's persistent downtrend since 2021, indicating low volatility similar to pre-financial crisis times. Sven acknowledges the potential for a 10-15% correction in the third quarter due to economic uncertainties, upcoming elections, and potential liquidity issues.

• So which way will markets go from here? Looking at his charts, Sven sees two possible routes we could take. Either the market