After reaching clear oversold side momentum two weeks ago, the S&P 500 started a short reversal toward the upside. The index started the week around 4.285 and reached its highest weekly level at 4.384. Still, Thursday`s and Friday`s trading sessions brought some reversal supported by the investors’ fears of rising inflation due to surge in oil prices, so the S&P 500 ended the week at level of 4.327, but still within profit of 0.45% on a weekly level.
Geopolitical tensions might continue to have modest impact on the US equity markets during the following weeks, considering its impact on oil prices. On the other hand, during times of uncertainties, the US Treasuries and Gold are perceived by investors as a good place to diversify portfolios until the picture of the future course of developments on the macro field is clearer. This indicates that US equities might continue to be under pressure during the week ahead. In this sense, there is some probability for the S&P 500 to head back toward the 4.200 support line to test it for one more time. A move toward the higher grounds does not seem likely based on current charts.
Geopolitical tensions might continue to have modest impact on the US equity markets during the following weeks, considering its impact on oil prices. On the other hand, during times of uncertainties, the US Treasuries and Gold are perceived by investors as a good place to diversify portfolios until the picture of the future course of developments on the macro field is clearer. This indicates that US equities might continue to be under pressure during the week ahead. In this sense, there is some probability for the S&P 500 to head back toward the 4.200 support line to test it for one more time. A move toward the higher grounds does not seem likely based on current charts.
