The financial services giant Cantor Fitzgerald is predicting a rally in the stock market in the next one to two weeks. In a recent interview on CNBC Television, Eric Johnston, a macro strategist at Cantor Fitzgerald, expressed his belief in a short-term bounce in the stock market, despite describing the current equity environment as “fairly poor.”
Johnston stated, “You have an economy that is clearly slowing. Uncertainty is quite high. But within that view, we think we’re going to get a tactical rally here, probably somewhere in the range of 3% to 5% in the next couple of weeks. We think things line up very well from a technical perspective.”
He pointed to technical indicators such as the Relative Strength Index (RSI) and the inverted VIX curve as signs that a rally is imminent. Johnston mentioned that the RSI falling below 32 has historically led to a strong bounce, and the fear indicated by the inverted VIX curve supports this notion. Additionally, he highlighted the decrease in net exposure by hedge funds and the expectation of a dovish stance from the Fed as factors contributing to a potential rally.
The US stock market recently experienced a significant loss of $5 trillion in value over the past three weeks, making the prospect of a rally even more appealing to investors.
In conclusion, Cantor Fitzgerald’s prediction of a stock market rally in the next one to two weeks is based on a combination of technical indicators and market factors. Investors will be closely monitoring the market for signs of a potential bounce in the coming weeks.
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