#1
#1 out of 2
business1d ago
Chart analysts caution not to chase this comeback rally
- The S&P 500 climbed modestly after Trump said talks with Iran were productive, but the gains may be short-lived.
- Analysts warned the rally could be a relief move without changing the longer-term downtrend.
- Analysts projected the S&P 500 could rise to around 6,900 in the near term but see a potential drop to about 6,175 later.
- The Russell 2000 entered correction territory, signaling broader weakness in small caps last week.
- Major indices briefly joined the decline before Monday’s rebound, signaling fragility in late-week trading.
- Analysts emphasized watching key resistance at the 200-day and 20-day moving averages.
- Market fear gauge has not spiked above 35, suggesting a moderation in selling pressure for now.
- One analyst framed Monday’s activity as relief rather than a new sustained uptrend.
- The overall tone suggests cautious positioning amid ongoing geopolitical tensions and volatility.
- Analysts expect potential downside in the S&P 500 over the next six months despite a near-term bounce.
- The report underscores a cautious stance among technical analysts regarding a sustained rally.
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