On Thursday, February 24, SPX was up by 1.01% after a strong reversal at the end of the trading day.
- The S&P 500 is poised for a bullish run as investors’ risk appetite improves.
- Ninety-three percent of the S&P 500 was down in the first minutes of trading.
- Following a likely Putin-Zelenskyy meeting, stocks have risen on the prospect of a ceasefire.
S&P 500 fundamental forecast
By mid-morning on Thursday, the index had fallen to 4,151, much below the 4,222 level when investors rushed in to buy stocks when markets fell in late January.
Since February 11, US equity futures have been in the grasp of bears, first due to rising tensions in the Russia-Ukraine conflict and then due to an escalation in military activity in eastern Ukraine, which spread to other cities as well.
Peskov stated that Russian President Vladimir Putin is willing to speak with Ukrainian President Volodymyr Zelenskyy about ensuring the neutral status and ensuring no armaments on Ukrainian soil.
The announcement offered a light of optimism that the Ukraine issue would de-escalate shortly, putting a stop to the ongoing carnage of the Ukrainian economy.
This headline not only bolstered risky assets but also gave equities a boost following a big sell-off.
Buying the dip
During Thursday’s turbulent session, investors bought the drop on some of the biggest tech brands. However, Amazon, Netflix, Alphabet, and Microsoft all ended the day with gains, reversing steep losses earlier.
Netflix increased by 6.1 percent, while Microsoft increased by 5.1 percent. In addition, Alphabet and Meta Platforms saw their stock prices rise by 4% and 4.6 percent, respectively.
On Thursday, President Joe Biden addressed Russia’s invasion of Ukraine, announcing a new round of sanctions against Russia as part of a broader campaign to disconnect Moscow from the global economy.
On the doc
Fundamental traders should watch the Economic calendar with interest rate forecasts in mind. While the situation in Ukraine has the potential to dominate the market, there are very explicit monetary policy data due in the Friday session.
The S&P500 is now trading in a narrow range of 4,254-4,290. However, it is expected to climb north towards 4,300 as investors’ risk appetite improves.
However, if Russia and Ukraine’s response spreads to other cities, the risk-off drive may reappear.
S&P 500 technical analysis: eyeing key levels
During the end of the session, S&P 500 is looking to stay above the 4280-mark. The index closed the day with a rise of 1.10%. The index is now trading above the 4288 level.
The index is below its 100-day MA on the daily chart, and the RSI is pointing upwards. A break above 4300 would open the door to 4341. If it can cross that level, we’ll see the index touching 4380.
On the flip side, the next support for the index lies around 4250. If the index slips below this level, we can see a downward movement towards the 4170 level.