S&P 500 IndexShort
S&P 500 ready for a reversal
The Fibonacci Retracement level of 61.8% shows signs of holding and a possible reversal of the trend of the S&P 500.
Optimism and trust in FED are driving the current upwards of the stock market. However, FED can't cure what's underlying the stock market.
Also, FED's actions could connive another problem, an entry to deflation. Deflation could become a real concern if consumers don't start spending and the reopening of the economy is no guarantee of instant recovery of spendings. Research shows that the normalization of consumption will likely take some time. Too early reopening could also create a second wave of infections further harming the economy.
Despite if the Fibonacci Retracement level of 61.8% won't hold I'm convinced that a setback is coming, sooner or later.
Optimism and trust in FED are driving the current upwards of the stock market. However, FED can't cure what's underlying the stock market.
Also, FED's actions could connive another problem, an entry to deflation. Deflation could become a real concern if consumers don't start spending and the reopening of the economy is no guarantee of instant recovery of spendings. Research shows that the normalization of consumption will likely take some time. Too early reopening could also create a second wave of infections further harming the economy.
Despite if the Fibonacci Retracement level of 61.8% won't hold I'm convinced that a setback is coming, sooner or later.
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