| Author | Message | ||
     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3840 Registered: 05-2011 Rating: N/A |
In the rebound-minded zone The stock market has had a tough start to the shortened week, but is off its worst levels of the day as the intensity of the early selling pressure has dissipated. The S&P 500 for its part is now "in the zone" where buyers have often liked to buy on weakness. The zone is the 3-5% pullback area from a prior high. That has been a typically reliable bounce point for a short-term oversold market in the intervening months since the pandemic low of March 2020. At today's low, the S&P 500 was down 3.8% from its closing high on December 15. That was three sessions ago and the day of the FOMC decision and Fed Chair Powell's press conference. The drop into "the zone" is a potential short-squeeze catalyst along with the understanding that this latest pullback phase has also dropped the S&P 500 below a typically reliable technical support level at its 50-day moving average (4607). These factors might not win out in today's session, but they are apt to stir visions of a possible rebound effort in coming days if the market can shake its worst concerns about Omicron and the Fed shifting to a tighter policy position. |