S&P500: Just As Expected, The Bears Take Charge
This follows on from the previously published article on the 26th February.
As you can see from the chart, we have broken to the downside of our key resistance level at 2815.00, as predicted in our last article “Is the S&P500 ready to topple over”. At this massive psychological level, we stacked up multiple confirmations and put the probabilities in our favour, which ultimately worked out for us.
The chart above demonstrates a clear bearish signal and rejection. We now seem to be making our way down to our next support level at 2750.00, which has given us multiple rejections off this level previously.
One of the fundamental factors I mentioned previously was, President Trump constantly releasing good news into the market about a trade deal being “very, very close” however, the market shrugged this off almost nonchalantly and finished lower on the day. When a market does not go up after good news, there is only one way it can go. Also, this week saw news come out that the “House Judiciary Committee” issued 81 requests to entities and individuals into probe Trump. Certainly, a catalyst to push the index lower, as investors worry into what they could find. Look for further developments in the story and also regarding the trade deal, as these two aspects will play a vital role in the S&P500 and the direction it goes.
Notable movers this week, CenturyLink and GAP both down over 6% respectively. Century-link recently missed on their sales revenue and made a dividend cut. GAP with a market cap of $10.49B, acquired the bankrupt brand “Gymboree’s” for $35 million for the online business, with an additional agreement to buy Janie and Jacks inventory....