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S&P 500 Index - What next?

by Timothy Straiton
Thursday 2nd April 2020

Current level of the S&P Index is 2470 and trading close to the weekly pivot point of 2456 and 22 percent below the falling 200 day moving average, currently at 3024. The index has expereineced a rebound to 2630 which is just below the Fibonacci 38.2% retracement from the low measured over the entire 3386 -2237 range.If the VIX remains at current high levels (currently at 53), then the chances are high that further downside lies ahead. A break below the weekly pivot level of 2456 would suggest that the market will retest the low of 2237 seen on March 23rd. The 14 day relative strength index is currently at 45% and remains shy of the falling resistance line indicated on the chart above. Buying the dip strategy has worked well for the past 11 years, and the recent recovery has certainly lured many investors into long positions. Current economic warning signs suggest that this strategy could well fail this time around and add fuel to the bear trend.



Charts courtesy of