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Shares prolonged their downtrend yesterday, however they rebounded and closed optimistic. So was it an upward reversal? Or, simply one other upward correction?
The index gained 0.57% on Monday after falling to the every day low of 4,062.51. It was the bottom since final 12 months’s Could. The market reacted to the quarterly earnings, poor financial knowledge releases, Fed’s financial coverage tightening plans and the battle in Ukraine. Shares reversed their intraday decline and it might seem like a extra everlasting reversal. Nonetheless, there have been no confirmed optimistic indicators up to now. The S&P 500 index this morning is gaining, and we may even see a consolidation forward of tomorrow’s essential Fed’s rate of interest resolution launch.
The closest essential resistance stage is now at round 4,200-4,250. Alternatively, the assist stage is at 4,050-4.100, marked by the native low. The S&P 500 index prolonged its four-month-long downtrend, as we will see on the every day chart (chart by courtesy of http://stockcharts.com):
Futures Contract – Consolidation Following Bounce
Let’s check out the hourly chart of the contract. Yesterday, it fell under the 4,100 stage, however it rapidly retraced the decline. This morning, it’s buying and selling inside a consolidation alongside the 4,150 stage.
On Thursday earlier than the opening of the money market we determined to open a speculative lengthy place. We’re nonetheless anticipating an upward correction from the present ranges.
(Chart by courtesy of http://tradingview.com)
Conclusion
The S&P 500 index may even see a consolidation following yesterday’s rebound. There’s numerous uncertainty regarding tomorrow’s Fed’s launch. The panic seen final Friday and yesterday might recommend that at the very least a short-term backside could also be in sight.
Right here’s the breakdown:
- The S&P 500 index prolonged its downtrend yesterday, however it closed increased.
- We’re nonetheless anticipating an upward correction from the present ranges.
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