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.
Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.
