After double bottoming in the past two days, SPX has managed to rally in the second half of the day to finish higher, reclaiming about half the losses of Monday. While the overall 1 hour momentum is still to the downside, and the futures as of this post is down by about 2%, SPX may be poised to rally to 3000 in best case near term, or retest 2750 if it's not able to muster buyers together to break the current resistance of 2880.
As i was telling a friend earlier in the week, we can expect some chop as politicians and bankers come out and talk, both encouraging and disappointing market participants. While the leveling off of the virus in China and Korea is on the decline (for now), the fact remains that elsewhere, the spread of the virus, or more correctly, the testing and confirmed cases of the virus, is increasing in places like EU and US. We have yet to hear much from other largely populated countries such as Japan and India.
I think when news begin to come out of these other regions, and i predict that it won't be good, markets will resume their worry about the effect of this pandemic on the global economy, as slowdowns in Asia will inevitably affect the economies of the west. My target for SPX remains at 2600 in March, and if that fails to hold, 2400 thereafter.
As i was telling a friend earlier in the week, we can expect some chop as politicians and bankers come out and talk, both encouraging and disappointing market participants. While the leveling off of the virus in China and Korea is on the decline (for now), the fact remains that elsewhere, the spread of the virus, or more correctly, the testing and confirmed cases of the virus, is increasing in places like EU and US. We have yet to hear much from other largely populated countries such as Japan and India.
I think when news begin to come out of these other regions, and i predict that it won't be good, markets will resume their worry about the effect of this pandemic on the global economy, as slowdowns in Asia will inevitably affect the economies of the west. My target for SPX remains at 2600 in March, and if that fails to hold, 2400 thereafter.