Goldman Sachs says S&P 500 rally has room to run — but not for long

The S&P 500 is more likely to lengthen its rally by the subsequent couple of weeks, boosted by bettering liquidity, falling volatility, lowered recession fears, and powerful seasonal tendencies, in response to circulation strategists at Goldman Sachs.

Information through Bloomberg:

“We expect this rally will proceed for the subsequent couple weeks however lose steam into August”

“We’re getting into the strongest month for the S&P traditionally” (July, with the primary half of the month higher than the again half)

Tailwinds cited:

• seasonality
• decrease volatility supporting sentiment
• systematic traders nonetheless have important capital to allocate
• improved liquidity
• sentiment improved with geopolitical tensions easing and optimism rising round commerce negotiations and potential fee cuts

GS on dangers:

• rally has been slender
• lower-quality shares main
• bullish positioning rising sharply