S&P 500 Futures: Exhaustive Candle Confirms Continuity Of Gap-Downs Ahead
Satendra Singh | Mar 29, 2020 05:38AM ET
On analysis of the movements of S&P 500 futures in different time frames, I find that the weekly closing with an ‘Exhaustive Candle’ in a daily chart confirms the continuity of gap-downs during the upcoming weeks. Perhaps, I could have already sensed the currently prevailing scenario well in advance while writing my analysis Can Corona Create Next Crash?.
There is no doubt that most of the readers did not want to believe the facts at that time, but since Feb. 20, 2020, the global equity markets have shown steep downward moves. Despite the coordinated efforts from the global central banks, the global supply chain as been paused and fears over coronavirus have turned the overall sentiment bearish.
One more gap-down in the S&P 500 futures may add more speed to this fall. The weekly closing levels, which are well below the weekly closing level of S&P 500; may add more fuel to bearish sentiments. Secondly, the gold futures look ready for a bouncing move during the upcoming week. This could keep the equity bulls running towards lower zone from here.
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