Asset Watch
Wednesday, November 2, 2022
So while volatility should be amplified, will the technicals provide the most important clue?
When examining the S&P 500’s two bear market rallies in 2022, both spurts of optimism coincided with the index rallying above and then holding its 10-day moving average. Likewise, when doubt crept in and short-term pullbacks occurred in July and August, the 10-day MA acted as support and higher highs materialised.
Therefore, with the 10-day MA ending the Nov. 1 session at 3,803.72, a close above or below the key level on Nov. 2 may determine whether or not there is more room to run.
As a result, should we expect a third bullish rendition, or will Powell play the villain during his press conference?