The S&P 500 has rallied significantly during the trading session on Thursday, breaking above the top of the shooting star that formed during Wednesday. This of course is a very bullish sign but quite frankly I think at this point we still need to look at the longer-term picture. The longer-term picture doesn’t look as rosy, so I think it is only a matter of time before we get that pullback that has the market retesting the lows again. If that’s going to be the case, then it’s very likely that we will continue to see a lot of volatility and quite frankly think at this point we are trading on the latest headline and panic more than anything else.
S&P 500 Video 27.03.20
Granted, there are a lot of companies out there that are really cheap right now and that is helping the S&P 500 as money managers trying to take advantage of value. Having said that, typically when you get some type of break down like this, there is almost always some type of return towards the bottom at the very least to try and solidify the support underneath. I think given enough time, it’s very likely that the market will try to find whether or not that bounce was the real deal or not, as is normal. I believe that the 2750 level above is going to be very resistive as well, and although that sounds like a pretty big move, when you look at the chart it still only something akin to a 50% Fibonacci retracement level.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Forecast – Gold Markets Show Confusion on Thursday
- Oil Demand Projections Get Worse, Putting Additional Pressure On Prices
- Silver Price Daily Forecast – Weak U.S. Dollar And General Optimism Help Silver Gain More Ground
- USD/JPY Price Forecast – US Dollar Breaks Through Major Support
- Crude Oil Price Forecast – Crude Oil Markets Quiet on Thursday
- GBP/JPY Price Forecast – British Pound Pulls Back Slightly Against Japanese Yen