Equities repeat February lows and there are signs that the worst could be over from a technical point of view.
The S & P 500 fell on Friday on its 200-day moving average, a level that dealers considered key factor support. On Monday, the market rebounded as fears over the trade war slowed and the S & P 500 rose well above the 2,600 mark.
But it will be crucial if the S & P 500 is above the 200-day average, which is now at 2,586. The S & P was still in full swing in the late morning, but still rose by about 0.9 percent. The 200-day indicator is a widely observable indicator used to track price developments. It simply represents the average closing price of the last 200 trading days.
"We are not calling what will happen in the coming days, but in general the uptrend is still intact because of this rising 200-day mark," Ari said Wald, Technical Analyst at Oppenheimer. "We're expecting a bounce here, we need to see if the trading action confirms it … Step 1
On Friday, the index reached the 200-day price, then at 2,585, closing just above, raising the tension level for traders who had to wait all weekend to see how the index would behave as soon as it did reached the average.
This is the second time that the S & P 500 has tested the 200-day sell-off that began in late January. The S & P 500 bounced off its 200-day moving average on 12 February after it hit lows on 9 February.