The stock market had another down week and is testing its previous lows on March 7th. This is coming at a time when quarterly corporate earnings thus far are largely beating expectations, but the continued worries of increasing inflation, intensifying war, and Chinese shut down are spooking the market and investors.
A few weeks back we discussed Technical Analysis with support and resistance levels of the S&P 500. In late March the S&P was moving up strongly and temporarily broke through a resistance level at 4600. The market was unable to sustain the upward move and over the past 3 weeks has slid back down close to the March 7th low at 4157. Just as the market will sometimes reverse directions when it hits resistance, it may also reverse directions when it hits a support level. The market is currently close to the previous lows and it will be a good sign if it bounces and moves higher. If the market breaks through the support level of these lows it is more likely there will be a continuation of a down trending market.
Photo by Neil Thomas on Unsplash
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