The financial sector and heavyweight financial stocks along with regional banks finally rebounded after their recent decline due to the collapse of Silicon Valley Bank (NASDAQ:SIVB) and Signature Bank (NASDAQ:SBNY).
In addition, Consumer inflation for February cooled as expected and bolstered expectations for a 25 basis point rate hike at the Federal Reserve's upcoming monetary policy committee meeting next week.
As a result, all 11 S&P sectors finally ended in the green, with Communication Services and Technology topping the board. Financials rebounded more than 2%.
Chart: SPX 15 mins and daily
Market participants had over the last month built up expectations of continued rate hikes from the Fed following hotter-than-expected economic data on inflation and the labor market. However, those expectations have been swiftly recalibrated since Friday, after U.S. regulators took over SVB and Signature Bank (SBNY) following liquidity crises at the lenders. Considering the recent bank failures, the Fed has its hands full. Tuesday's CPI report that showed nagging inflation remains problematic, geopolitics, and the general environment of uncertainty gripping the economy and markets.
Chart: SPX weekly and daily
And from the tech side of analysis, the SPX dropped to 3800ish which kinda changed people's expectations for ATH this year, but still holds perma bulls on the weekly chart. As trendlines I draw on the weekly chart, it's likely that the market will keep moving aside from the trendlines.
In today's 640 pre-market talks, I will talk about my opinion about this market and couple interesting setups. Feel free to join my LIVE STREAM on TradingView.
Please feel free to express your ideas and thoughts in the comment section.
In addition, Consumer inflation for February cooled as expected and bolstered expectations for a 25 basis point rate hike at the Federal Reserve's upcoming monetary policy committee meeting next week.
As a result, all 11 S&P sectors finally ended in the green, with Communication Services and Technology topping the board. Financials rebounded more than 2%.
Market participants had over the last month built up expectations of continued rate hikes from the Fed following hotter-than-expected economic data on inflation and the labor market. However, those expectations have been swiftly recalibrated since Friday, after U.S. regulators took over SVB and Signature Bank (SBNY) following liquidity crises at the lenders. Considering the recent bank failures, the Fed has its hands full. Tuesday's CPI report that showed nagging inflation remains problematic, geopolitics, and the general environment of uncertainty gripping the economy and markets.
And from the tech side of analysis, the SPX dropped to 3800ish which kinda changed people's expectations for ATH this year, but still holds perma bulls on the weekly chart. As trendlines I draw on the weekly chart, it's likely that the market will keep moving aside from the trendlines.
In today's 640 pre-market talks, I will talk about my opinion about this market and couple interesting setups. Feel free to join my LIVE STREAM on TradingView.
Please feel free to express your ideas and thoughts in the comment section.
