S&P500 Technicals


This is truth that index has fallen out of its current upward trend channel but given the fact that was triggered more by a market panic than reasonable sell-off, investors can treat the recent pin bar as a significant support.However, it would be good to see further confirmation in form of further bullish candlesticks. Today's momentum doesn't provide much optimism and it's more probable that volatility will appear on the markets in the second part of the week.

While looking at volume and a number of open interest one can see that the situation is quite similar to the one on the German stock market. However, here large number of new open interest has been initiated recently, which points at the fact that the whole downward impulse from the black Monday has been absorbed by the demand side.

Source: Bloomberg