SPY-Decision Point , AlphaOverBeta Market Outlook

Market Outlook 18.05.2020
This week the stock market returned to positive territory with big technology companies leading the heard.
Stocks decline las week after Fed J.Powell earns about recovery, US-China tensions increase
The stock was down this week with the S&P 500 down -2.3% to 2863.7.
This week continued the previous few weeks high volatility environment that is probably here to stay for the next few weeks as the market is in a crucial decision point,
On one hand, there are the bulls pulling up with FOMO, positive hope for a vaccine against the coronavirus, optimism about the short duration of the current recession and economy reopening soon, on the other hand, there are the bears pulling down with economic conditions fear, uncertainty as to how and when will the economy recover and what is the damage to small-medium size businesses, for us 2850 for the S&P500 is that decision point, moving above it means the bulls have won and below means, the bears are in control.

AlphOverBeta Next Week Forecast
We have chartered a number of bands for the S&P500, these bands are used for risk control and decision making.
285-290 - this is the bullish zone, as long as the S&P500 stays in or above this zone, the sentiment is bullish.
280-265 - This is the “Undecided” zone where the market had not decided yet as to where the stock market is going.
Below 265 - is the bearish zone with the bears in control pulling prices downwards.

Trade Smartly,
Alon, AlphaOverBeta


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