666 days ago • Posted by Paul de La Baume
#Stocks lower as #recession fears escalate. #trading #charts #technicals
Tuesday's bounce came to a halt as stocks fell on recession fears. S&P500 futures are retesting Friday, briefly falling below 3'700, a short-term support level. The backdrop continues to be negative for stocks and risky assets with the Fed expected to continue tightening amid a rapidly decelerating economy. Optimism about a soft landing is evaporating quickly, and we could expect a lot of back and forth in market sentiment as there is this continued uncertainty about how fierce will be the economic slowdown. Fed Chair Powell will speak today in front of lawmakers on drive to rein in inflation. Looking at technicals, on the S&P500, the 3'700 level should be significant support short-term. A breakdown could lead to further downside, possibly retesting the lows, while 3'780 should act as a resistance.
