8 days ago • Posted by Paul de La Baume

#Stocks gain as sentiment recovers, more gains? #S&P500 #technicals #markets $SPY $QQQ

Stocks are recovering, consolidating on gains since Friday. At 3'740, S&P500 futures stand 2.7% above the lows, but still 2% below Thursday's meltdown that sent investors panic-selling on growing recession fears. Why are stocks rallying? S&P500 futures are up 1.7% on what seems to be a combination of selling fatigue and improving sentiment. With most of the Fed interest rates tightening most likely behind us, investors are beginning to see the glass half-full. However, we are definitely not out of the woods yet as the clear trend is for central banks around the world to tighten until inflation figures improve, and the economic consequences remain to be seen if it pulls the economy into recession. From a bearish perspective, stocks could be bouncing from oversold conditions and be an opportunity for sellers to sell into strength, as we have seen multiple times last week.