S&P 500 Weekly Update: Backing And Filling… Or Worse?

Last week we got the anticipated bounce in a stock market downtrend. We are giving back some of those gains to start the week, but the key question is:  What will happen next? From what I see, I expect range-bound consolidation this week between 1884-1933 with big support at 1872 on the S&P 500 Index (SPX). Of course, there is a chance of going higher towards 1940-1950, however I will curb my expectations beyond that at least as of now. Most sectors, from a very short term perspective came into the week overbought or nearing overbought levels. So some back and filling is expected. We had a huge move from 1810 to 1933 or so. Crude Oil is trying to hold on to the gains from last week but struggling and looking…
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Stock Market Update: The Roller Coaster Ride Continues

Last week saw another week of selling in the stock market – fast controlled selling. But it gave way to another sharp oversold rally on Thursday after the S&P 500 undercut its lows. And the price action on Friday looked quite similar to January 20th although there were some positive divergences emerging over the very short term. All bounces thus far have ended at either the 38.2% Fibonacci retracement or the 50% retracement on shorter timeframe charts (hourly etc.). The path of least resistance is still down as all of the stock market indices are still below their 50 and 200 day moving averages and pointing downwards. Investor sentiment is very poor but nothing extreme. And there still is a lot of complacency on either side of the tape. As well, volatility…
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