Stocks could see a reprieve from selling in the week ahead, after the past week's sharp plunge and rebound.
Retail sales and housing data are highlights of the economic calendar, and Fed Chairman Jerome Powell speaks at a conference Tuesday. The consumer is a focus when a few big retailers — Walmart, Home Depot, and Target — post earnings, the last big reports of the first-quarter earnings season.
But it will be the way the stock market trades that investors are watching most, since it may be signaling Thursday's low was a near-term bottom. The 10-year Treasury yield hit a high of 3.2% in the past week, and the pullback from that high was seen as a positive for stocks.
Strategists who watch charts expect the market to trade sideways to higher in the second half of May, and they say a retest of the past week's low of 3,858 on the S&P 500 is likely later on. The S&P was down 19.55% from its high when it hit that intraday low Thursday, just below the 20% threshold of an official bear market.
"Does that mean the lows of the year are in? Probably not, but it could create an oversold bounce back to retest the 4,100 or 4,200 level in the S&P 500," said one chart strategist. "In bull markets, you get weeks when you pull in. In bear markets, you get oversold bounces.
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