Risk Warning: CFDs and margin FX are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone and may result in you losing substantially more than your initial investment. Please consider our PDS

Market Insight - Spectre of Recession and intense Inflation.

Market Insight – June 29th, 2022.
• S&P500 – Gloomy Market Outlook, Downtrend is still Intact.
• Spectre of Recession and intense Inflation.
• Could S&P 500 Test Support at 3500 level?

Market Insight – June 29th, 2022.

  • S&P500 – Gloomy Market Outlook, Downtrend is still Intact.
  • The spectre of Recession and intense Inflation.
  • Could S&P 500 Test Support at 3500 level?

S&P 500

S&P 500 is down from its Jan 3 Closing peak at 4796.56 to 3821.54. It is a drop of about 20.3% and the Index is just inside the Bear Market territory. US market is yet to fall into a recession in 2022 but could the index have found support just around the recent trough it formed at 3636.87 on June 16th. It is crucial for the investors to figure out if this was another Bear Market Rally and if there is more downside coming or if the market has found the bottom. The Index was down by 2% on Tuesday as the investors grew increasingly concerned about a potential recession caused by intense inflation and the tighter monetary policy of the Federal Reserve. Some suggest that this could be the end of the month rebalancing. However, the chart is telling a different story.

Chart Analysis

The above S&P 500 chart shows that the index is continuing to show weakness and lost its upward momentum. This is the second session in a row when investors started to push the market down by selling off intensely. This indicates the Downtrend is still intact. The market is moving in the descending parallel channel and again the prices could fall below the midline towards the key support level at 3710. Any drop below the previous low could push the prices further down quickly towards the Support Zone at 3580 a new low for the markets. As the concerns over the recessions and inflation weigh heavy on the market and apparently the corporate earnings going to drop this quarter, we may see a test of 3500 support in July.

Trade Insights

US500 – Chart shows Viable Short positions below the Pivot at 3870 with the target of Key Support Level at 3710. And then to head towards the support cluster is at 3580 to 3560.

Alternatively, Long positions above the Major Pivot point at 3870 with the target to head towards the Key Resistance level at 3970 and then towards the Resistance zone at 4050 to 4070

See Chart of the Week

Open a FREE CFD demo trading account


The information provided is of a general nature and is not intended to be personalised financial advice. The information provided is not intended to be a substitute for professional advice. You may seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances.

Trading in Rockfort Markets derivative products may not be suitable for everyone as derivative products may be considered as high risk. Please ensure that you understand the risks involved. A Product Disclosure Statement can be obtained here and should be considered before trading with us.

Vishal, R.

June 30, 2022

Share on facebook
Share on twitter
Share on linkedin

Related blog posts

Get weekly insights from award-winning team

Sign up for all the latest updates from our Rockfort Academy including news, industry analysis and updates from trading central team.

  * By entering your email, you agree to our Terms of Service and Privacy Policy.

Open a FREE Demo Trading Account

Rockfort Markets’ products are risky; please read our PDS.