The S&P 500 has shown itself to be somewhat lacking during the trading session as we continue to see a lot of questions being asked of the global economy out there. I believe that the S&P 500 is simply trying to take a bit of a breather before making its next move, which will be based upon whatever headline comes across the lines next. If we can break above the 2650 handle, that would be bullish but on the other hand if we were to turn on a break down below the lows of the trading session on Tuesday, that probably sends this market looking towards the 2500 level. As a general, these big meltdowns don’t necessarily go straight up and there’s normally another attempt to break down lower.
S&P 500 Video 01.04.20
At this point, you should probably be on the sidelines when it comes to indices, because nothing good can come of the news cycle that we are about to have. If you do find yourself being forced to trade this for some reason, use a small position size in the CFD market, and I would certainly say stay out of the futures markets. The futures markets have seen some major players blowup recently, and one look at this chart can give you an idea as to why. I believe that the 2750 level above might be a target given enough time but really at this point I don’t like the idea of putting too much money into a market that is moving on fear and panic more than anything else. Furthermore, none of the economic numbers coming out are going to be very good so really at this point the only numbers you need to be paying attention to our the coronavirus figures, which are getting worse.
This article was originally posted on FX Empire
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