The U.S. stock market was hit with force last week, taking the indices down by the most in a single day since the height of the coronavirus panic. The market though is trying to make that a one-off event with it working on stabilizing a bit.
The S&P 500 is doing so around the 200-day moving average, and regardless of whether the end of the pullback is here or another leg lower is coming, it comes as no surprise we are seeing some volatility around this widely-watched technical threshold.
If the market holds onto yesterday’s low at 2965, and can soon get moving higher, then it could quickly mark the end of a pullback and run towards the corona-gap that kicked off the Q1 sell-off. But if we lose yesterday’s low and the Nasdaq 100, a very important leading index, breaks the lower bounds of nearly two-month channel, then more selling appears to be in the cards.
The S&P 500 is doing so around the 200-day moving average, and regardless of whether the end of the pullback is here or another leg lower is coming, it comes as no surprise we are seeing some volatility around this widely-watched technical threshold.
If the market holds onto yesterday’s low at 2965, and can soon get moving higher, then it could quickly mark the end of a pullback and run towards the corona-gap that kicked off the Q1 sell-off. But if we lose yesterday’s low and the Nasdaq 100, a very important leading index, breaks the lower bounds of nearly two-month channel, then more selling appears to be in the cards.