Investing.com investing.com 27 Dec, 2020 12:00 am

Week Ahead: Stimulus Uncertainty To Roil Stocks; USD Down; SPX To 5000 In 2021?

Week Ahead: Stimulus Uncertainty To Roil Stocks; USD Down; SPX To 5000 In 2021?
Market Overview Analysis by Investing.com (Pinchas Cohen/Investing.com) covering: Nasdaq 100, XAU/USD, S&P 500, Dow Jones Industrial Average. Read Investing.com (Pinchas Cohen/Investing.com)'s latest article on Investing.com

p For a long time now, we've been warning of a potential crash, as stocks have been developing a gargantuan broadening pattern since January 2018.A deeper penetration would confirm the blowout of the massive broadening pattern, which would turn it bullish.The implied target indicates it would repeat the dynamics of the broadening pattern to the upside—claiming a target of 5,000.But American investors remained in limbo regarding additional fiscal aid after Congress agreed on a package but in a surprise move US President Donald Trump refused to sign it into law.

With so many questions still clouding the view of the future, why have investors remained willing to pay the highest prices in history for some equities?During the last Fed meeting in mid-December, the US central bank promised to keep pumping cheap money into the economy while leaving rates near 0% till the country reaches full employment again.

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