Keith Schneider | Sep 27, 2021 12:09AM ET
Last week began with fears on an Evergrande (OTC:EGRNY) (China’s leading property developer) debt default fueling a technically damaging gap down. The Monday morning gap put the SPY and QQQ well below their 50-day moving averages (DMA), the IWM well under its 200-DMA, and China’s large-cap ETF (FXI) at a new 52-week low.
Global equity markets recovered quickly with the US equity benchmarks leading, and more specifically led by Grandpa Russel (IWM), which closed up +2.79% for the week.
US equities also shrugged off the possibility of a debt default by the US.
The bounce was aided by some additional fuel from being oversold last week, and it’s currently mean reverting.
So, the big question remains…
Is this primarily a technical bounce that will run out of steam shortly or the start of a more substantial move that will carry to new highs?
Is the energy sector which led this week (XLE +7.8%) indicating a robust economic recovery?
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.