29 Aug 2021, 10:19
Last week, we were kind of expecting the stock market to make some sort of correction because we are right at the blue resistance line in the chart. The correction did not come as the S&P 500 Index still continues to hug that resistance line. The big news last week was the Federal Reserve Chairman’s speech about supporting tapering and reducing its purchase of bonds. Whilst most investors expecting this to send the stock market down, it worked wonders instead and we recorded a bullish day on Friday instead.
Could this be interpreted as an optimistic signal for the stock market? Next week’s price action would be critical to watch out for. Currently, we are still right under the resistance. Therefore, the chances of a meaningful downwards correction occurring remains high.