What are the possibilities of a bounce from this level after the Fed-induced dumping of equities?
The Federal Reserve all but guaranteed a 50 basis point interest rate increase in May that caused increased selling on Thursday and Friday of last week.
Two big down days late in the week increased the strength of the current downtrend with prices now generally slightly above support levels.
The question is will this support level hold or is there more downward price pressure likely to develop?
This video will explain the key levels and price action in order to identify a strengthening market.
In the meantime, prudent traders should consider stepping aside until the next up move is identified.
Aggressive traders should consider playing the market to the downside.
Also in this video is a short overview of historical interest rates and a discussion on interest rate inversions and their connection to recessionary periods.
Holding only stocks that are in favor and avoiding the rest is an easy method to improve your trading and investing results.
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Comments are always welcome.
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