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3 clues about what’s next for the S&P 500 after weeks of tariff-fueled selling

The trader on the New York Stock Exchange (NYSE) works in New York, United States, March 9, 2020.Brian R Smith
  • The LPL Research said the long -term trend of S&P 500 is still intact despite a 16 % decrease.

  • The measurement index was recently volatile, as it decreased by 2 % yesterday before a crowd 2 % today.

  • The fluctuation may continue, with the risk of S&P 500 re -testing a decrease of about 4,835.

There is a lot of noise in the stock market now.

From the customs tariff to president Donald Trump, who threatens to shoot at Federal Reserve Chairman Jerome Powell, investors are struggling with uncertainty in the sky that can feed an economic contraction.

This noise has led to great fluctuation. After reaching a standard level in January, the S& P 500 index decreased approximately 20 % before the assembly. On Monday, the index fell by more than 2 %, but it recovered almost the same amount today.

Below is a summary of the main indexes starting at 12:05 pm in New York:

During large uncertainties, technical analysis can be useful for investors, which helps them to cut noise and obtain a clear road map for the future direction of the stock market.

“The multi -front trade war is in itself a lot of stocks that must be dealt with, so adding an independence crisis in the Federal Reserve on top of it has understandable markets,” said Jeff Bochsinder, the chief stock strategy in LPL Financial, said.

S & P 500 graph
LPL Research

The first major ready -made meals of the S&P 500 chart is that even after the S&P 500 decreased by 16 %, the long -term rising trend remains “sound”, as evidenced by the index that bounces of support for the growing trend line specified in its lowest level in March 2020 and October 2022.

“This indicates that the course is less resistant from here is likely to be higher, but not without risk in the short term,” said LPL Research.

The intense sale in the stock market may be a surrender earlier, indicating that the index’s decrease to about 4835 could determine the “decrease” of this current sale.

The strengthening of this situation is the fact that the depression has occurred on two levels of converging support: in the horizontal support line market by the peak S&P 500 in January 2022 and the rising Qatari direction line that started in March 2020.

“Many elements in our review menu have been examined to obtain a solid decline, including historically excessive conditions on the indicator and component level, laundry readings via the market breadths, the most likely accessible fear, and the scale of trading at the registry level,” said LPL Research.

2025-04-23 00:07:00

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