S&P 500 being close to a correction ought not change anything


Renta 4| The rise of the S&P 500 is starting to show signs of excesses in the short term, such as the appearance of bearish divergences at high overbought levels or the excessive complacency readings in sentiment indicators. The proximity of a corrective leg in the coming weeks would not be surprising nor would it undermine the good momentum as long as the American benchmark remains above its main short-term supports, the first at 4320 points and the second at 4200 points:

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S&P500 earnings growth, a map for the stock markets?

The chart below shows Goldman Sachs’ estimates for S&P 500 companies’ earnings growth over the coming quarters, with energy companies (blue bars) and without them (red line). The correlation that the red line has been showing with the evolution of the S&P500 is striking. If the estimates are correct and the correlation continues, earnings growth would be maintained until the fourth quarter.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.