S&P 500 Index Chart Analysis
- The world is now affected with two main issues – covid-19 which reduced world consumption and demand, and the super weak oil prices which is fuelling an oil-led credit crunch.
- This was reflected in the sharp fall which has since recovered on the back of aggressive measures put in place by governments, with the US even pushing out an unlimited Quantitative Easing policy.
- The market has currently broken the upwards trend line and has exhibited ranging behaviour signifying some indecision and price discovery in the S&P. This weakened momentum is now forming a flag which would signal the start of a downward continuation on a break down. Should the market reverse sharply after touching the bottom of the flag formation, this signals that bulls are still in control and the market would probably have another leg up.
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