5/3/2020 Markets flat this week, and futures point to a fairly large gap down Monday. Looking like a neutral / slightly bearish week.

Hi everyone. Below is the weekly chart of SPY. Since we dropped Thursday and Friday, I suspect we will have a bit of continued selling next week (at least on Monday and Tuesday).  As a result, I think we close neutral or down about 5%. If we move down, we will probably retest 270 rather quickly, and anything below that would mean a retest of the 250s (~10% lower from 270). 

Sentiment is still quite bearish so we could see continued buying until more people are bullish, but I still think it is more likely we move lower next week. Thanks for reading! 

SPY weekly 5_3_2020

4 thoughts on “5/3/2020 Markets flat this week, and futures point to a fairly large gap down Monday. Looking like a neutral / slightly bearish week.

  1. “Sentiment is still quite bearish so we could see continued buying until more people are bullish“ —> Should we view AICC sentiment indicator as a contrarian view? Because, I am bit confused with the quoted statement

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s