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Volatility Continues in Stock Markets

By:
Christopher Lewis
Published: Feb 28, 2022, 17:06 UTC

The S&P 500 has been all over the place during the trading session on Monday as traders came back to work. That being said, the market looks as if it is trying to go positive yet again.

Volatility Continues in Stock Markets

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The S&P 500 initially gapped lower to kick off the trading week, as fear continues to be a major issue. That being said, the market is likely to continue to be very noisy in general, and therefore I believe it makes a lot of sense that we continue to see violent moves, as we will not only have people trying to price in the inflationary situation, but also the central bank blockade in Russia. Beyond that, we also have to worry about the Federal Reserve tightening monetary policy although a lot of traders out there are starting to suggest that the Federal Reserve will not be able to do the 50% interest rate hike that everybody was worried about.

S&P 500 Video 01.03.22

The 4250 level continues to be an area that a lot of people will pay close attention to, as it has been important multiple times in the past. If we do break back down below that level, then it is likely that we will continue to see downward pressure, which is more likely than not. Ultimately, this is a market that I think does break down, but it is putting up a fight. Any rally at this point in time will more than likely continue to attract short-sellers, but in the short term it might be a little bit of a fight. The 200 day EMA currently sits right at the 4400 level, so that is also something worth paying attention to. In general, I think you will continue to see this market move on geopolitical events, but as soon as the situation in Ukraine become stable, you can almost count on some type of inflation headline to come back into the picture.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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