The S&P 500 has had another brutal week, but it does start to look a little bit supportive on the daily chart. At this point, the 200 week EMA is going to be in focus at the 2666 level, and if we can break above that it would be an extraordinarily bullish sign. I do think that we are due for a bounce, but obviously the fundamentals are going to be a bit difficult to deal with. Keep in mind that the markets are focusing on the coronavirus situation, and the potential devastation it will due to the global economy. I don’t necessarily think that the selling this time, just that we are getting a bit overextended to the downside.

S&P 500 Video 23.03.20

The 2350 level is important to pay attention to as it is the bottom from the massive crash at the end of 2018, and so far, it seems to be holding. Because of this, I think it’s very likely to be an area that a lot of people will be paying attention to. I expect a bounce here, but it isn’t until we clear the 2666 handle that I am convinced from a longer-term standpoint that the buyers are taking over. In the short term you may be able to buy the bounce, and I do think that longer-term traders are starting to dip into the market slightly, but it would not surprise me at all if we broke down below the candlestick for the week and dropped towards the 2100 level that extends down to the 2000 level.

This article was originally posted on FX Empire

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