Looks like the main indices are moving back toward their all time highs, as if pulled higher by some invisible force. The DJIA is lagging, but the S+P, Nasdaq, and Russell are right up there. The European indices look considerably less bullish however.
One would think the Fed has a strong incentive to keep things stable and the stock market buoyant so they can continue to normalize rates and reduce their bloated balance sheet.
Trump's trade war threatens this process and could slow global growth to the point of recession, and thus put the kibosh on the Fed's normalization plans. The high dollar is also a risk, especially for the emerging markets that have large dollar denominated debts.
Meanwhile there are other agendas out there, like the mid-term US elections, the desire to ratchet up tensions between the US/West and Russia/China, a possible war with US/Saudi Arabia and Iran, and who knows what else. So as usual, the world is 'skating away on the thin ice of a new day'..
