The SPX topped out at 2941 and fell into a bear market at 2350, by one tiny little whisker, -20.1%, and only for one day. Price takes the dead-cat bounce off the bottom and is further boosted from last week into today by President Trump and China cheerleading the trade talks and Federal Reserve Chairman Powell flapping his dovish wings. Stocks were soft today so King Donny ran to the cameras and microphones and said the trade talks with China are going well. The happy talk creates buoyancy in the stock indexes.
For the move down from 2941 to 2350, the Fibonacci retracements are shown on the chart. The 38% retracement is at 2574. Price is poking around this 38% Fib deciding to bounce or die. If the SPX bounces, it will seek the 50% Fib at 2644. If the S&P 500 fails from the 38% Fib, price may drop to the 2450 support. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added Tuesday Morning, 8:27 AM EST: The SPX finishes the Monday session at 2583 and continues to ponder the bounce or die decision at the 38% Fibonacci retracement at 2574.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.