by Paul Rejczak through Sunshine Earnings
The S&P 500 index barely prolonged its downtrend yesterday, however on the finish of the day it was greater. So was it a reversal or simply one other short-term bounce?
The broad inventory market index gained 0.21% on Wednesday, after bouncing from the brand new native low of 4,162.90. The S&P 500 fell to its March native lows of round 4,160. It prolonged the downtrend regardless of quarterly company earnings releases. There’s nonetheless quite a lot of uncertainty regarding the Fed’s financial coverage tightening fears and Ukraine battle. This morning the S&P 500 index is anticipated to open 1.1% greater following yesterday’s FB quarterly earnings launch. Nevertheless, the market retraced a few of its in a single day advance after a lot worse than anticipated quarterly Advance GDP information launch (-1.4% vs. expectations of +1.1%).
The closest necessary resistance stage is now at round 4,200-4,250. Alternatively, the help stage is at 4,100-4,150, marked by the earlier lows. The S&P 500 index retraced the entire March advance, as we are able to see on the each day chart (chart by courtesy of stockcharts.com):
Futures Contract Above 4,200 Once more
Let’s check out the hourly chart of the S&P 500 futures contract. On Tuesday the market fell to its earlier native lows of round 4,140, and yesterday it bounced again above the 4,200 stage once more.
The market is technically oversold and there are some optimistic development exhaustion alerts. Due to this fact, we expect an upward correction from the present ranges (our premium Inventory Buying and selling Alert contains particulars of our buying and selling positions together with the stop-loss and revenue goal ranges). (chart by courtesy of tradingview.com):
Conclusion
On Wednesday, the S&P 500 index fluctuated following its latest declines. The market closed greater, but it surely was nonetheless beneath the 4,200 stage. At the moment, the necessary Advance GDP launch was a lot worse than anticipated. Nevertheless, we may even see a “promote the rumor, purchase the information” motion right here. Traders will even anticipate at present’s necessary quarterly earnings releases from AAPL and AMZN.
Right here’s the breakdown:
- The S&P 500 index remained beneath the 4,200 stage yesterday; it might be counterintuitive, however at present’s worse than anticipated Advance GDP launch could set off an upward reversal.
- We expect an upward correction from the present ranges.
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Thanks.
Paul Rejczak,
Inventory Buying and selling Strategist
Sunshine Earnings: Efficient Investments by way of Diligence and Care
