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The bought off on Friday after information concerning the new COVID variant. At present, we are going to doubtless see a rebound, however the short-term image stays bearish.
The S&P 500 index misplaced 2.27% on Friday, Nov. 26, as buyers reacted to the information about new COVID variant detected in South Africa. The market broke beneath its latest native lows and it acquired away from the 4,700 degree. The Friday’s buying and selling motion appeared like a significant downward reversal.
The closest necessary assist degree is now at 4,550-4,580. However, the resistance degree is at 4,650, marked by the latest native lows. The S&P 500 retraced most of its early November advance, as we are able to see on the day by day chart (chart by courtesy of http://stockcharts.com):
Nasdaq 100 Fell Nearer to 16,000
Let’s check out the chart. The know-how index remained comparatively stronger than the broad inventory market on Friday, because it didn’t break beneath the early November native low. Nonetheless, it acquired near the 16,000 degree and it retraced virtually 800 factors from its final Monday’s new report excessive of 16,764.85. The index closed above the 16,000 mark on Friday, as we are able to see on the day by day chart:
Apple Is At Earlier Excessive
Let’s check out largest inventory within the S&P 500 index: Apple (NASDAQ:). Apple accelerated its uptrend per week in the past on Monday and it reached the brand new report excessive of $165.70. Nonetheless, it retraced virtually all of its intraday advance that day. On Friday, it acquired again to a possible assist degree of round $157. For now, it seems like a downward correction.
Conclusion
The S&P 500 index is anticipated to open 1.0% larger this morning, as international markets are shrugging off the brand new COVID fears. We are going to doubtless see an intraday consolidation following larger opening. The broad inventory market index could enter a flat correction inside a short-term downtrend.
Right here’s the breakdown:
- The S&P 500 traded inside a short-term topping sample final week and on Friday it suffered a greater than 2% sell-off.
- A speculative brief place continues to be justified from the danger/reward perspective.
- We expect a 5% correction.
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