S&P 500: Technical aspect in the medium term is frightening

The announcement of new measures by the Federal Reserve has turned the market around. Futures swiftly rebounded but the rise seems to be more about liquidating short positions than about changing the outlook for the future, in the opinion of Tomás Sallés from FXStreet.

Key quotes

“The sharp upward reaction is moving the indicators on the 4H chart closer to the possibility of the bulls regaining control.”

“The first resistance level is at 2400 points, then the second at 2430 points and the third one at 2500 points.”

“The DMI in the 4H range is accelerating its bullish trend and is supported by the divergent trend line that originated in the last hours of March 9th.”

“The trend in ranges above 4H continues to be strongly bearish, even with the slight improvement of the daily range setup. Ensure any buying position on the S&P500  with tight stops and minimal leverage.”