In this Daily chart of the S&P 500, we are now seeing sellers regain control near the 200-day SMA (pink line).
Historically this has been a crucial area for the survival or capitulation of bull markets after price has broken below it.
Fundamentally:
Yes, businesses are slowly starting to re-open across less-affected areas of the US. However, what we're seeing now could be the markets discounting the inevitable lower rate of growth that is to come at least in the near-term future.
On top of this lower-growth environment due to huge setbacks globally, we're now seeing the mainstream media talk about "not fighting the Fed" which is usually a good maxim but the mainstream media has quite a reputation for being drastically wrong at inflection points.
Right now I'm very short biased on this index, but not so much in the Qs, as this unique environment is still favorable for the tech sector.
If we start to regain upside momentum and see this index continue towards ATH, my short bias is gone, however.
Strong opinions, but weakly held if wrong.
Historically this has been a crucial area for the survival or capitulation of bull markets after price has broken below it.
Fundamentally:
Yes, businesses are slowly starting to re-open across less-affected areas of the US. However, what we're seeing now could be the markets discounting the inevitable lower rate of growth that is to come at least in the near-term future.
On top of this lower-growth environment due to huge setbacks globally, we're now seeing the mainstream media talk about "not fighting the Fed" which is usually a good maxim but the mainstream media has quite a reputation for being drastically wrong at inflection points.
Right now I'm very short biased on this index, but not so much in the Qs, as this unique environment is still favorable for the tech sector.
If we start to regain upside momentum and see this index continue towards ATH, my short bias is gone, however.
Strong opinions, but weakly held if wrong.