S&P 500 is about to fall

S&P 500 is about to fall

2020-04-22 • Updated

Most analysts believe S&P 500 is overbought and it will have a correction soon. What is the reason?

There is no secret that many large US companies have a tough time now amid the coronavirus pandemic. Goldman predicts a 15% EPS decline in the first quarter for S&P 500. That would be the largest drop in earnings reported by the index since 2009, when the decline was 15.7%.

Moreover, according to the Morgan Stanley, earnings will decrease by 20% this year. The guidance from corporations may show that the virus damage was devastating and it takes a long time to rebound. The business loan demand increased by 17.3% the previous week, what generally indicates the beginning of the recession. While major economies around the world take tentative steps toward reopening, it’s still to early to talk about their recovery.

Let’s have a look at the S&P 500 chart below. The price was declining from February 20 to March 23, then it reversed and went upward. Few days ago it reached the 50-day moving average and had a short correction down. So, it might continue increasing only if it breaks through the 50-day moving average. However, most analysts anticipate the upcoming falling down.

S&P500Daily.png

Similar

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

XBRUSD: Prepares to Correct Intraday Rally
XBRUSD: Prepares to Correct Intraday Rally

Bearish Scenario: Sales below 80.00 with TP1: 79.34, TP2: 78.94, TP3: 78.55, and 78.00 Bullish Scenario: Buys above 78.00 (wait for a retracement to the zone) with TP: 79.34 TP2: 80.00, and TP3: 81.00

Latest news

XAUUSD: Bears Prepare To Takeover
XAUUSD: Bears Prepare To Takeover

On Friday, the gold price (XAUUSD) retreated from a recent two-week high, facing selling pressure. This decline was driven by hawkish minutes from the FOMC meeting, indicating the Fed's reluctance to cut interest rates. Elevated US Treasury bond yields, supported by a "higher-for-longer" narrative, further weakened demand for gold...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera