US SPX 500; A sustained recovery or just a dead cat bounce?

Equities markets have made a significant recovery in recent weeks but only to arrive at the 61.8% Fibonacci retracement of the recent sell off down to 2,185. In this week’s Technical Insights, Toby from Trade With Precision assesses the US SPX 500 technicals and notes the market would be predicting a “V” shaped and sustained recovery from here… however he disagrees with this sentiment. He sees the overhead resistance, coupled with the unprecedented US and global unemployment rate as a headwind too strong for the equities markets and anticipates a move back towards the lows. CMC Markets is a global leader in online trading, offering CFD and FX trading. Learn how to trade CFDs with our variety of educational videos on trading strategies. Trade the global financial markets, including currencies, commodities, indices, companies and treasuries. Spreads may widen dependent on liquidity and market volatility. Investing in CFDs carries significant risks and is not suitable for all investors. You could lose substantially more than your initial deposit. You do not own, or have any interest in, the underlying assets. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.