G20: what did the leaders decide?
The G20 summit took place in Bali, Indonesia, on November 2022…
S&P 500: recovery from the shock
Information is not investment advice
What happened?
The performance of the US stock market has been quite dramatic this week. S&P 500 dropped by 7% four minutes after the US trading session started on Monday. Then trading resumed, but the index stayed in the negative territory. Stocks fell on the growing fear of the economic impact of the coronavirus and the price that broke out in the oil market.
Economic stimulus
Tuesday brought some support for S&P 500 as President Donald Trump said that he will seek a payroll tax cut and “very substantial relief” for industries that have been hit by the virus. Apparently, the virus got closer to the President: he has been in contact with two Congressmen who are now in self-quarantine.
Trump said that he would provide details of his anti-coronavirus plan at a press conference on Tuesday. If he announces big steps, S&P 500 will cheer and get higher.
The prospects of recovery
Correction to the upside is a natural case after a big decline.
According to a research done by Bespoke Investment Group, S&P 500 has fallen by 10% or more on 10 other Mondays since 1952. Interestingly, it has gained more than 2.2% the next trading day in all of the 10 cases. In addition, on average, the index has returned 12.75% in the six months after the slump.
Of course, the previous history offers no guarantees for the future price action. Still the combination of this observation together with Trump speech has a chance of producing positive market dynamics.
The chart
S&P futures price is testing levels above February low at 2,853.25. Resistance lies at 2,975 (resistance line of the short-term downtrend, 50-period MA on the H4). Support is at the previous low of 2,695.
Similar
The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Popular
Will USDJPY slide lower in 2023?
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
BoC Rates Could Alter The Trend on USDCAD and others
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
MSFT faces gloomy forecasts ahead of earnings report
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
Choose your payment system
