S&P 500 Hits Important Resistance Levels


As for technical analysis, we are witnessing an almost perfect picture for future stock markets growth. The markets decline during October-December was a "Trump Rally" correction. This correction brought back the attractiveness of those stocks that were drivers of growth in previous years, but then looked a bit overvalued.

The subsequent pullback since the end of last year was sharp, showing overbought levels on the daily charts. In early March, this overbought background turned into a decline, which, in turn, was also bought out. The first bell that the markets did not seriously consider the March decline, was that the markets quickly turned to growth after touching the 200-day moving average. The second confirmation was the consolidation above 2800 - an important resistance level, from where the S&P 500 turned to decline four times since October.
It is also worth noting that the growth of US stock indices is still far from exhaustion, as the RSI remains in neutral territory.

The S&P 500 has overcome previous important levels of consolidations, and now it can be on the direct path to updating its highs at 2940, which is 4% higher than current levels.

The Fed, the ECB and the PBC rhetoric softening can be noted as the main market drivers. As in 2016, they managed to stop panic sales in the markets by mitigating rhetoric. Later this week, the next Fed meeting will take place, and markets are waiting for the soft rhetoric confirmation of the most important world central bankers, which additionally can breathe life into the demand in the stock markets.

This article was written by FxPro

This article was originally posted on FX Empire


More Related News

Trump says the stock market is
Trump says the stock market is 'starting to look very good' after the Dow plunged over 1,000 points amid coronavirus fears

The comments come as the Trump administration prepares to request an emergency funding package from Congress to combat the coronavirus.

Coronavirus fears hit markets, bringing US shares down as tech and SaaS slip
Coronavirus fears hit markets, bringing US shares down as tech and SaaS slip

Fears over the potential impact of the coronavirus spreading in Europe, Asia and the Middle East have sent stocks plummeting in Monday's open -- with tech stocks among the hardest hit. The reason for the declines are clear: Over the weekend, cases outside of China swiftly rose in Europe and other parts of Asia, indicating that hopes of containing the virus' spread appear to be dashed. Economists expect China to release key indicators about the strength of its economy later this week and the news does not look good.

Is Couch Potato Investing Right for You?
Is Couch Potato Investing Right for You?

When creating a portfolio for retirement or other investment goals, it's all about strategy. Investing like a couch potato essentially means taking more of a hands-off approach to  your portfolio. If you're curious about how couch potato investing works, here's … Continue reading ->The post Is Couch Potato Investing Right for You? appeared first on SmartAsset Blog.

The Methods of Investment Analysis
The Methods of Investment Analysis

Selecting a profitable investment is a challenging for many investors. Fortunately, investors can use investment analysis to help them determine how an investment will perform. Here are a few of the most common methods of investment analysis that can help … Continue reading ->The post The Methods of Investment Analysis appeared first on SmartAsset Blog.

Warren Buffett reasurres shareholders about Berkshire Hathaway
Warren Buffett reasurres shareholders about Berkshire Hathaway's long-term prospects despite underwhelming 2019

Berkshire Hathaway Inc. underperformed in 2019, but its boss is playing it cool.The conglomerate's stock rose 11 percent compared to a 31.5 percent total return in the S&P 500, but CEO and chair Warren Buffett sought to reassure investors in his annual shareholder Saturday, which is in line with his longstanding opinion that long-term performance should be prioritized over short-term fluctuations in the stock market.He defended the company's decision to invest heavily in stocks despite even though it's been several years since Berkshire Hathaway made a major acquisition of a company. He said while he'd prefer to buy a whole company, the "fickle" stock market means stocks are the...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Economy