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Christopher Lewis
S&P 500

The S&P 500 has pulled back a bit during the trading session on Friday, showing a bit of exhaustion to the 2600 level. By pulling back to the 2500 level it shows that the market is a little bit skittish going into the weekend which of course would not be a huge surprise considering everything that’s been going on. We have to worry about the coronavirus and its slowing down the economy, but beyond that we also have to worry about any type of headlines coming out over the weekend.

That being said, I do think there is support underneath and I do think that a pullback is probably healthy. After all, you know when a “V-shaped recovery” if you can avoid it. You would rather to have seen a lot of buyers over a longer period of time providing a bigger base.

S&P 500 Video 30.03.20

Furthermore, we have a lot of horrific economic numbers ahead of us, so it’s hard to imagine that we are simply going to take off to the moon at this point. With that, I believe that the 2400 level could be targeted and then possibly the 2300 level. A bounce from there does make sense, as it could form a little bit of a base do over to a “higher low.” That is quite typically what happens after you see a massive selloff like we have in the short amount of time. If we break down below the 2200 level, that opens up the possibility of a move down to 2000.

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