New post
John Wang
May 4 21:30

Technical analysis paints grim picture, no further growth expected

Neither new lows nor new records expected.
Technical analysis spells bad news for US. Experts suggest that the rapid growth that started in the middle of March might be coming to a decisive end.
The S&P 500 gained 31% since it reached the lows of March 23. Throughout April the stocks rallied, showing their best performance since 1980s. However, after closing high on April 29, the broadest index dropped 3.75 in two sessions. JPMorgan Chase’s technical analysts now claim that S&P might have constructed a medium-term ceiling.
According to the experts, the market turned bearish. This is the development of a slowing down trend that emerged in the middle of last month.
The development of the market will most likely depend on the future of the pandemic, the decisions of regional authorities as well as the readiness of the country for a second wave of the virus that might hit the country in fall and winter. The possibility of the market reversing back to bullish in the second half of 2020 still exists.
Bensignor Investment Strategies’ analysis claims that the stocks are unlikely to fall below the lowest level of March 23. New records, however, are also unlikely.