S&P 500: Renewed weakness later in the quarter – Credit Suisse
|The aggressive collapse in the S&P 500 has extended below, and remains still capped by its pivotal long-term 200-week average, analysts at Credit Suisse report.
Key quotes
“The pivotal long-term 200-week average is typically the maximum drawdown we witness when we are seeing aggressive corrections within multi-year bull trends, as has been seen on many occasions.”
“Even the 1987 crash was contained at this average. The notable exceptions are clearly the 2000/2002 and 2007/2009 bear markets, and indeed back in 1973/1974.”
“If we see the index hold below this critical average on a sustained basis, there is clearly a risk we may be seeing a more significant bear trend develop.”
“Near-term, we expect some consolidation/recovery post the Q1 collapse, but we look for renewed weakness later in the quarter.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.