S&P 500 Has Wild Recovery During the Week

The S&P 500 broke down rather significantly during the course of the trading week, especially on Thursday as we had seen Russia inter-Ukraine. With that being the case, the market was likely to break down rather significantly, but as the West has “blanked”, letting Putin take a huge chunk of Ukraine without doing anything major. In other words, a huge war is not breaking out from this situation.

S&P 500 Video 28.02.22

If we were to see a lot of negativity then a break down below the bottom of the hammer would of course open up a move down to the 4000 handle, perhaps even lower than that. All things been equal, this hammer is a very bullish sign right at the 4250 level, an area that of course has been important more than once. Breaking above the top of the candlestick could send this market looking towards the 4500 level, followed by the highs again. This would obviously be a very bullish turn of events, and with the world events and of course Federal Reserve monetary policy working against the value of the stock market, it is definitely going to take a lot of work.

When you look at this chart, you should keep in mind that a lot of this is going to come down to speculation of what the Federal Reserve is going to do. The Federal Reserve is set to hike interest rates in the next year, so that of course causes a lot of headwinds for the market. However, the Federal Reserve were to suddenly change its monetary policy tone, then we could see the market to get much higher.

For a look at all of today’s economic events, check out our economic calendar.