Bouncing off the low levels
The S&P index from the high to the low has declined by 18.8%. We are seeing a little bit of a rebound. The low for the day reached 2752.33. The current price is trading at 2797.51.
Technically, the price fell below its 38.2% retracement of the move up from the 2016 low to the high reached last month. That level comes in at 2788.65. We currently trade just above that level. On the downside the next targets come in at the swing lows from March in June 2019 at 2722.22 and 2728.81. A break of those levels will have traders targeting the 50% retracement of the same move higher at 2601.81.
What would improve the sentiment technically?
Looking at the hourly chart, the price is below the February 28 low price at 2855.84. Getting back above that level would give the buyers a small win.
Above that, the 38.2% retracement of the move down from the swing high on Wednesday comes in at 2896.65 (call it 2900). Getting above that level would be another win for the dip buyers. The 50% retracement comes in at 2941.23.
The good news for the broad stock market is that there has been some buying after the circuit breakers 7% was reached. The markets will be on alert for any Fed action or government action. So far both are keeping their powder dry. The Federal Reserve has not announced any emergency easing. They announced on March 3 at 10 AM ET.
From the White House, the president has commented about fake news, his best decision to stop travel to certain parts of the world, about the great job done by VP pence on the coronavirus and how Obama/Biden was the most corrupt administration ever.
Sitting tight but the markets are stabilizing a bit.