📉 Will the S&P500 Fall into the 3210-3110 zone? Is the market discounting recessions.
📉 In today's post we will look at the S&P500 index, which, in my opinion, after the end of last week and the formation of the candlestick formation of the falling star,
informs us of the possibility of a drop into the levels of 3210-3110, which are determined by 2 measurements of the fibo grid, the first from the covidian bottom to the peak and the second the largest correction in the downtrend. Also corrections they are the ones of the largest downward impulse.
📉 Also paying attention to the 3 most important indicators, namely MACD, STOCH, RSI There are no signals of strength but weakness.
📉 MACD SIGNAL LINE is below the 0 line, which is an obvious signal of a long-term downtrend.
📉 STOCH has already fallen below the 20% oversold zone, which is an obvious prohibition to look for any upward positions.
📉 Also, the RSI has been below the 50 line, or trend line, for quite some time.
📉 What provokes the market to fall? 📉
📉 It is impossible to ignore the most important issue, which is the policy of the FED which, in order to fight inflation, increases interest rates, as a result of which credit becomes more expensive and major companies avoid large investments.
📉 On the horizon we see more interest rate hikes, which of course have a negative impact on the market.
📉 We are also facing a season of third-quarter results that include the country's four largest banks in terms of assets. Which are likely to lead to declines in earnings and disappointment for investors, which could contribute to another downward momentum.
📉 Also on the calendar we have U.S. producer price data on wednesday and the consumer price data report on thursday.
These are two of the most important events this week that will have an impact on the future shape of the Fed's monetary policy
📉 In September, the central bank lowered its forecast for U.S. economic growth to just 0.2% in 2022 and 1.2% in 2023.
📉 Looking at all these arguments, I would encourage you to watch this index in the coming days, weeks
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注释
Preparing for rally, waiting for tomorrow's inflation data in the USA
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Movement in line with analysis, following inflation readings
注释
SPX is struggling, we will see what today's session will bring. The specter of recession hangs over the U.S. economy.