S&P 500 Hit New Yearly Low, But Still Doesn’t Look Bearish
Sunshine Profits | May 03, 2022 10:00AM ET
Stocks extended their downtrend yesterday, but they rebounded and closed positive. So was it an upward reversal? Or, just another upward correction?
The S&P 500 index gained 0.57% on Monday after falling to the daily low of 4,062.51. It was the lowest since last year’s May. The market reacted to the quarterly earnings, poor economic data releases, Fed’s monetary policy tightening plans and the conflict in Ukraine. Stocks reversed their intraday decline and it may look like a more permanent reversal. However, there have been no confirmed positive signals so far. The S&P 500 index this morning is gaining, and we may see a consolidation ahead of tomorrow’s important Fed’s interest rate decision release.
The nearest important ):
Futures Contract – Consolidation Following Bounce
Let’s take a look at the hourly chart of the S&P 500 futures contract. Yesterday, it fell below the 4,100 level, but it quickly retraced the decline. This morning, it is trading within a consolidation along the 4,150 level.
On Thursday before the opening of the cash market we decided to open a speculative long position. We are still expecting an upward correction from the current levels.
(Chart by courtesy of
Conclusion
The S&P 500 index may see a consolidation following yesterday’s rebound. There’s a lot of uncertainty concerning tomorrow’s Fed’s release. The panic seen last Friday and yesterday may suggest that at least a short-term bottom may be in sight.
Here’s the breakdown:
- The S&P 500 index extended its downtrend yesterday, but it closed higher.
- We are still expecting an upward correction from the current levels.
Get The News You Want
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.