While this week finally showed some buyers come in as the $2T recovery bill passes congress, SPX appears to be looking to rollover on the hourly charts.
SPX has retraced back to the long term trendline at 2540, and while it seemed for a moment today that it may finish the week above that level, late selling has put it right smack on it, as markets reassess the long term economic recovery outlook and global debt, despite the money flowing in from world governments to combat the situation. This also put us stepping back from entering a snap bull market for the week (20%). If the downward momentum builds next week, there's a reasonable chance that the target would be 2200, the recent "bottom" on the SPX.
I am somewhat surprised how markets are not treading sideways at all here for even a few days - everyday is a snap up or a snap down. Perhaps in the coming week as we have retraced our levels back to the break below point, but markets are not spending much time thinking and assessing; they're still in reacting mode and headlines and programs seem to rule the trade. Great for some, terrible for others.
Stay safe, stay indoors. Cheers.
SPX has retraced back to the long term trendline at 2540, and while it seemed for a moment today that it may finish the week above that level, late selling has put it right smack on it, as markets reassess the long term economic recovery outlook and global debt, despite the money flowing in from world governments to combat the situation. This also put us stepping back from entering a snap bull market for the week (20%). If the downward momentum builds next week, there's a reasonable chance that the target would be 2200, the recent "bottom" on the SPX.
I am somewhat surprised how markets are not treading sideways at all here for even a few days - everyday is a snap up or a snap down. Perhaps in the coming week as we have retraced our levels back to the break below point, but markets are not spending much time thinking and assessing; they're still in reacting mode and headlines and programs seem to rule the trade. Great for some, terrible for others.
Stay safe, stay indoors. Cheers.