SPY-Short term 1-2-3 pattern
The stock market continued to rally last week as trader risk appetite continued to increase with the Fed announcing more stimulus action.
The S&P 500 gained 12.1% in one of the best weeks since the 90’s.
The Coronavirus situation is starting to be a little bit more optimistic as some countries like Italy and Spain start to see their curve flattening and the number of cases in the US is moving to the lower side of the estimates.
AlphaOverBeta Next Week Forecast
Next week is going to be a key week for the market as the rally hit a certain high that will test the buyers, in case the S&P500 holds over the 2600 level, this will be a significant strong trigger, on the other side, the 2450 is used as the levels to watch for another leg to the downside.
When reading and listening to all the trading experts, you hear the same advice from all – stay out, for now, the risk is not over, pick the higher-quality stocks and the market didn’t bottom yet.
A simple question – if that’s so, how is it that the market is up? Who’s buying? Can’t be retail traders, they are out, listening to the “gurus”, so… It’s the gurus buying! That’s the only conclusion here, they tell nice stories, but in the meantime, they buy the dip.