CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

SP500 - a dead cat bounce or a stronger recovery Part II?

March 17, 2022 3:36 AM
However, the median dot in 2023 at 2.75% indicates an intention to take the terminal rate firmly above the neutral rate. An imminent start to quantitative tightening was also flagged. Despite this, equity markets ripped higher, contrary to what might have been expected.

There have been conflicting narratives surrounding the status of the peace talks between Russia and Ukraine. However, an acknowledgement by Ukraine's President Zelensky that peace talks were becoming "more realistic" after three bitter weeks of the war was a positive development.

Earlier in the session and after a wild ride of late on Chinese equity markets, China's State Council announced steps to restore confidence in the economy and capital markets. A new Covid treatment strategy was also revealed to balance Covid containment with economic activity.

U.S equity markets also found encouragement from Fed Chair Powell, admitting "it may take longer than we like" to bring inflation down. Recognition that a slower, longer hiking cycle is required to support a "sustained economic expansion.”

A week ago, we asked here if the recovery from the 4100 low in the S&P500 was a dead cat bounce or the start of a more substantial recovery. As the chart below shows, the S&P500 is now eyeing the band of significant resistance noted in last week’s article at 4400/20.

Should the S&P500 close above 4380/20, we would be more open to the idea that a tradable low of sorts is in place at 4100. However, to ensure that the S&P500 is on a firmer footing, a sustained break above the 200-day moving at 4461 is needed. Until then, we remain cautious and comfortable with the idea, it's better to be too late than too early.

 

Source Tradingview. The figures stated areas of March 17th, 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

How to trade with City Index

You can trade with City Index by following these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    • Open an account in the UK
    • Open an account in Australia
    • Open an account in Singapore

  2. Search for the company you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

 

 

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024