Apr 21, 08:24 PM

Market Analysts Predict April 8th S&P 500 Lows Will Be Retested Amid Lack of Washout Selling and Trade Policy Shift

Market analysts and chart experts indicate that the recent lows in the S&P 500 are unlikely to hold, with a retest of these lows expected. Historical data shows that it is rare for the S&P 500 to decline 3% or more in the month following a bear market bottom, as seen only a few times in 2009 and 2020. Despite some orderly selling and short covering rallies, there is no evidence of panic or washout selling, which typically signals a market bottom. Investors are advised to be cautious about dip buying until more decisive signs of market fear and a shift in trade policy provide confidence that the worst market conditions have passed. While some past lows did not require retesting, current market conditions suggest that the April 8th lows will need to be tested again to confirm stability.

Written with ChatGPT (GPT-4).

Sources

Nick Colas & Jessica Rabe (DataTrek)@DataTrekMB
2 years ago
Market lore has it that every significant low needs a retest. That’s not always true (2002, 2009, 2020), but it is likely correct now. In order for the April 8th lows to hold, investors must see enough of a trade policy shift to give them hope that the worst has passed.
CNBC@CNBC
2 years ago
Here's why the market bottom isn’t in yet: No sign of washout selling https://t.co/qlSAwJfVfz
Markets & Mayhem@Mayhem4Markets
2 years ago
There's still no fear in this market. Today was orderly selling and then a short covering rip into the close. Sets us up for more downside. Nothing here looks like a bottom you can bet on yet.

Market Analysts Predict April 8th S&P 500 Lows Will Be Retested Amid Lack of Washout Selling and Trade Policy Shift

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