Equities markets have made a significant recovery in recent weeks, to arrive at the 61.8% Fibonacci retracement of the recent sell-off, down to 2,185.
In this week’s technical insights, Toby from Trade With Precision assesses the US SPX 500 technicals and notes the market would be predicting a 'V' shaped and sustained recovery from here.
However, he disagrees with this sentiment. Toby sees overhead resistance, coupled with the unprecedented US and global unemployment rate as a headwind too strong for the equity markets, and therefore anticipates a move back towards the lows.
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