- summary:
- S & P 500 counters after 10 % slide, recover 5,700. Is this a real recovery or just a temporary bounce?
After a series of red days that witnessed the S&P 500 chip more than 10 % of its last peak, the index finally returned to green. Investors breathe a sigh of relief with the passage of broad markets at the market level from its sharp correction, and the restoration of the level of 5700. The question now is whether this represents the beginning of a new leg or merely bounced temporarily in an increasingly increasingly market.
The main factors that lead the S&P 500 recovery
- Reducing inflation and federal reserve policy modifications
- Modern economic data indicates that inflation is cooling, which reduces pressure on the Federal Reserve to maintain honesty.
- The strength of the technology sector and the prosperity of artificial intelligence
- Big Tech has led this gathering, especially the stocks driven by artificial intelligence, which are still flexible despite the broader market concerns.
- Flexible companies profits
- Companies showcase pricing power, and profit margins remained stable despite the opposite winds.
- Invested feelings
- The Wall Street analysts are optimistic with caution, as many see the recent decline as a healthy correction instead of the start of the bear market.
Technical Analysis: The main levels of viewing
- Current price: 5,699.90
- Main resistance levels: 5,750, 5,900, 6000
- Main support levels: 5,600, 5500, 5,400
- Market direction:
- The S&P 500 is still higher than the moving average for 200 days, indicating that the long -term bullish trend is still intact.
- RSI moved from the sales land, indicating the possibility of more bullish trend if the momentum continues.
Expectations: Does the market resume?
Although the S& P 500 recovery is encouraged, merchants should remain cautious amid the dangers of macroeconomic economics. The following moves of federal policy, corporate profits reviews, and continuous geopolitical doubts will be it is very important in determining whether the index can maintain its recovery.
The decisive break that exceeds 5,750 may lead to governing the bullish momentum, which may pave the way for its highest levels ever. However, the failure to adhere to more than 5,600 may indicate more negative risks. Investors must monitor confirmation signals before this naming this with a full recovery.
