#sp1! - S&P500 futures gapped down on the first night of trading following the worst week for stocks since the financial crisis. A continued push down was expected after more negative news flowed out during the course of the weekend, most notably in the U.S. where we saw the first Covid19 death, as well as localized quarantines and self-isolation being recommended in a few states.
The main levels to watch for an indication of what Monday's trend will be for stocks when markets re-open are shown in orange. The upper orange line is where Thursday's price closed and where Friday's price were unable to close above. The lower orange line is where price bottomed on Friday. A move above the upper line would indicate that traders are attempting to form a bottom, or relief rally; a push below the lower orange line would indicate that traders aren't done selling the Covid19 fear as new lows are continuing to be made.
The PPO is still in a hard decline, while the RSI is attempting to level off in oversold territory, though the RSI could remain oversold for quite some and doesn't necessarily mean that prices are prime to buy just yet.
Judging by the continued deterioration of the situation, and lack of containment world-wide, we can expect traders to be hesitant to push prices higher until/unless the Federal Reserve and other global central banks step in with lower rates. Even then, the reactionary bounce on that potential event will likely be short-lived as the overall outbreak looks to be just kicking in to gear.
Good luck out there this week, more updates on SP500 after the markets close tomorrow, or in the early morning if there is a significant price move or updated Covid19 news.
The main levels to watch for an indication of what Monday's trend will be for stocks when markets re-open are shown in orange. The upper orange line is where Thursday's price closed and where Friday's price were unable to close above. The lower orange line is where price bottomed on Friday. A move above the upper line would indicate that traders are attempting to form a bottom, or relief rally; a push below the lower orange line would indicate that traders aren't done selling the Covid19 fear as new lows are continuing to be made.
The PPO is still in a hard decline, while the RSI is attempting to level off in oversold territory, though the RSI could remain oversold for quite some and doesn't necessarily mean that prices are prime to buy just yet.
Judging by the continued deterioration of the situation, and lack of containment world-wide, we can expect traders to be hesitant to push prices higher until/unless the Federal Reserve and other global central banks step in with lower rates. Even then, the reactionary bounce on that potential event will likely be short-lived as the overall outbreak looks to be just kicking in to gear.
Good luck out there this week, more updates on SP500 after the markets close tomorrow, or in the early morning if there is a significant price move or updated Covid19 news.