Is this the Pullback to Buy on the S&P 500?
The S&P 500 just had its worst two-week performance since March, down 4.8 percent between August 28 and September 11. Is it the pullback everyone’s been waiting for? Here are a few things to consider.
First, the index just tested and held its 50-day simple moving average (SMA) for the first time since it ripped through that line in mid-April. It’s a pretty simple indicator, but widely followed.
Next, Friday’s low roughly was almost exactly at the 23.6 percent Fibonacci retracement level, based on the low from early April.
Third, Friday’s close was slightly above the 3338 level where the index closed on February 21, the Friday immediately before coronavirus hammered the market.
Finally, negativity remains very high with just 24 percent of respondents in the last AAII poll identifying themselves as bullish. Meanwhile, we’re likely to hear more soothing words from Chairman Powell on Wednesday.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
First, the index just tested and held its 50-day simple moving average (SMA) for the first time since it ripped through that line in mid-April. It’s a pretty simple indicator, but widely followed.
Next, Friday’s low roughly was almost exactly at the 23.6 percent Fibonacci retracement level, based on the low from early April.
Third, Friday’s close was slightly above the 3338 level where the index closed on February 21, the Friday immediately before coronavirus hammered the market.
Finally, negativity remains very high with just 24 percent of respondents in the last AAII poll identifying themselves as bullish. Meanwhile, we’re likely to hear more soothing words from Chairman Powell on Wednesday.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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