Stock Markets Get Hammered on Fear

The S&P 500 has fallen rather hard during the course of the trading session on Thursday as Russia has attacked Ukraine, causing a lot of fear out there. That being the case, the market obviously is looking very nervous, especially as we continue to see plenty of reasons for stocks to struggle beyond conflict. After all, interest rates in America are likely to go higher, although there is already started some talk about the Federal Reserve will not be able to raise rates as rapidly as they once thought. If that is the case, that is actually bullish for stocks so you may get what looks to be a bit of a confusing move, due to the fact that we may see stocks bounce a bit.

S&P 500 Video 25.02.22

Looking at the chart, the 4250 level is an area that should offer a bit of resistance, assuming that we pop up to that level. This is simple “market memory” that could come into the picture, as we had seen so much buying pressure there, that a lot of traders will be more than willing to get out of positions that had been falling under water, as the markets have sold off so drastically. With that being the case, think the market is probably a “sell on the rallies” type of situation still, and it is probably only a matter of time before we see further downward pressure. Ultimately, I do think that the market continues to favor going towards the 4000 level, but it may take a while to get there. With that in mind, I little bit of patience and paying attention to short-term charts will probably pay off.

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