Banks expect the stock market to fall in the near future
Morgan Stanley and Bank of America experts warn that the stock market could go down in the near future. This is signaled by the fact that the prices of almost all stocks in the S&P 500 (92%) are at levels above their 200-day moving averages. According to historical data, this portends a downturn in the short term. A decline in the stock markets could occur within the next 5 days. Practice has shown that it usually comes within 5 days and within the next 1 and 3 months in similar conditions, notes Mike Wilson, lead equity strategist at Morgan Stanley. He cites statistics from the past 30 years to back it up. Bank of America analysts agree, pointing out that the vast majority of S&P 500 stocks have exceeded the 200-day moving average - a rare occurrence in itself, which observed only 5 times (when looking at weekly statistics). In 4 out of 5 cases, the U.S. was in a recession.