If the S&P 500 can close higher today, it will be a headline-grabbing 10 days in a row.
In the short term, investor sentiment rather than fundamentals, are driving stocks higher.
Google, having avoided an anti-trust judgement and launched a competitive phone to Apple’s lack of an innovative one, is leading the index up:
Google shares go parabolic. (Source: Stockcharts.com)
Google jumped over 4% yesterday. More importantly, the stock now has an RSI – relative strength index – of over 88, a level usually seen when small-caps become memes bid up by Reddit users.
Overall, the S&P 500’s RSI hit 70, the low side of overbought territory — for the entire index.
“Fed rate cuts tomorrow are likely priced in,” writes portfolio director, Andrew Packer, “it may not trigger a selloff, but at these levels, investors may be disappointed with a .25 cut.”
Tech investors will remain bullish on the prospect of multiple rate cuts over the next few meetings.
But be wary of any indication the Fed tries to rebuff Trump’s overtures and, God forbid, remain independent tomorrow.
~ Addison
P.S. Politics are exerting extreme pressure on money market funds, too.
This week on Grey Swan Live! with Adam O’Dell – at 2 p.m. ET, Thursday, September 18, 2025 — we’ll be investigating the $10 trillion pile of cash sitting on the sidelines during the terrifying bull market on Wall Street.
Mr. O’Dell has been warning investors how impending changes to monetary policy are going to force savers out of cash and into the markets… or gold. More details to come. Sign up now to become a member and join us for this week’s call.
If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.
