Thursday, March 5, 2020 6:00 AM EDT
S&P 500: Despite yesterday’s impressive relief rally across US equities, concerns continue to linger with Fed’s decision to provide an emergency cut doing little to dispel the current macro uncertainty thus far. Alongside this, while the S&P 500 posted a modest rebound, the risk barometer (Figure 1) continued to head lower, which in turn raises the risk that the S&P 500 is not out of the woods yet. While our cross-asset volatility index (Figure 2) remains elevated, therefore the S&P 500 is vulnerable to another pick up in volatility. At the same time, with the index failing to make a close above key resistance situated at 3128, downside risks are likely to persist.
FIGURE 1: RISK BAROMETER RAISES RISKS FOR S&P 500
FIGURE 2: CROSS ASSET VOLATILITY REMAINS ELEVATED
S&P 500 PRICE CHART: DAILY TIME FRAME
(Click on image to enlarge)
Disclaimer: DailyFX, the free news and research website from IG, is one of the world's leading sources for news and analysis ...
more
Disclaimer: DailyFX, the free news and research website from IG, is one of the world's leading sources for news and analysis on the currency, commodity and index trading community. With nine internationally-based analysts publishing over 30 articles and producing 5 video news updates daily, DailyFX offers in-depth coverage of price action, predictions of likely market moves, and exhaustive interpretations of salient economic and political developments. DailyFX is also home to one of the most powerful economic calendars available on the web, complete with advanced sorting capabilities, detailed descriptions of upcoming events on the economic docket, and projections of how economic report data will impact the markets. Combined with the free charts and live rate updates featured on DailyFX, the DailyFX economic calendar is an invaluable resource for traders who heavily rely on the news for their trading strategies. Additionally, DailyFX serves as a portal to one of the most vibrant online discussion forums in the forex trading community. Avoiding market noise and the irrelevant personal commentary that plague many forex blogs and forums, the DailyFX Forum has established a reputation as being a place where real traders go to talk about serious trading.
Any opinions, news, research, analyses, prices, or other information contained on dailyfx.com are provided as general market commentary and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
less
How did you like this article? Let us know so we can better customize your reading experience.