Hello friends, History tells us that hte last two years of almost every presidency the president normally inflate the economy and as a result the stok market rally and the dollar weakens. As we all know, in the next couple of days, the newly elected president Joe Biden is going to take office. Therefore, as the previous presidants have done, he will deflate the economy and as a result the US dollar will get stronger, stock market go down. Another reason for the stock market to go down, is the fact that Biden promised to raise taxes on big corporations, what is that mean? , less net income and less projected cash flows in the future as a result less valuations of the big company share prices. Technically speaking, we see that the SP500 broke the trend support level on the 4 hour chart.
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