Following the worst session since the global financial crisis of 2007/08 the markets are in a recovery mode today with European stocks and US futures posting promising gains. Strategists at Rabobank analyze the key points to watch on the S&P 500 index.
“The rebound in global stocks has been triggered by President Trump saying that his administration will discuss various fiscal measures with the US Congress and that there will be ‘major’ economic announcements later today.”
“In our view this is a classic bear market rally rather than the beginning of a sustainable return to normality.”
“The Fibonacci retracement at 3141.75 is the key pivot to watch on the upside as it would have to be cleared to declare that the bulls have regained the initiative.”
“When the bear rally runs out of steam, the Fibonacci 61.8% retracement of the entire 2019 rally will come under pressure again at 2746.51. A break lower will expose the December 2018 low at 2346.58.”