Chart Source : Poems2.0
It was a very strong finish over in the USA as stocks surge on positive news of a vaccine by moderna.
That surge took the S&P past its 200ema on its daily chart which is a positive sign if you’re on the long side. On the daily chart we can see its on a bigger sideways consolidation from about 2760 to around 2968 levels.
If S&P 500 does break above the 2968 level we might see it move to the next possible level of 3100. Many have been skeptical of the rally so far and to be fair we have been too. S&P 500 have rebound about 30% since the low and is just about 13% off from the high. Its quite hard to imagine that given all the bad economic data that has been coming out. With unemployment data at its all time high, people calling this worse than the great depression. But one thing that other traders are mentioning is ‘don’t fight the feds’ . They have been quick to respond to the crisis, printing and pumping trillions into the markets.
Though we have caught some downside, we would have wished for a lot more but if market at this point in time is not going down, let’s follow the trend and see where that takes us to. It could be a false breakout at this level so stay alert! Don’t give up yet!
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