Yesterday, the fed announces a continued liquidy boost.
Just in time! The SP500 rocketed higher, it was a very bullish session and the index was able to rebound on a very important support level.
Do the fed look at charts, I don’t know but this could mark the start of a more sustained rally.
Long term momentum indactors are deeply oversold and sentiment indicators are pessimistic with clear signs of capitulation among retail investors.
Economists are very bearish and most of them think the US economy is already in recession.
This is good news!According to Ned Davis Research, the market bottoms in recessions have been followed by median gains for the SP500 of 15% 3 months later, 23% 6 months later and 34% a year later.
Moreover, since 2000, technical analysts have noticed that a significant trend reversal has always occurred during March: major high in March 2000, low in March 2001 , high in March 2002 , major low in March 2003, high in March 2004 , minor high in March 2005 and minor low in March 2006.