The global stock market is filled with a wave of sales, and the snowball effect is captivating everyone who is not alien to high-valued quotes, passing the summit in revenue dynamics, higher interest rates, the effects of the US-China trade war or weakening business climate indicators in Europe.
The collapse of the stock market erased all of this year's profits from the SP500, the sell-off went through Asian markets, and the opening in Europe does not look better. The markets bend under their own weight and suffer from the deterioration of sentiment. The fundamental reasons indicated above have been present for many months and have suddenly become more dangerous than before? On the other hand, if the prevalence of negative factors over positive is 10: 0, it does not get on the path of a speeding train. But what can be said about 2018, that you can never fully trust the market and do not be surprised when the withdrawal will come suddenly. It looks like the global investors do not remember the correction from the turn of January and February and the subsequent dynamic rebound. The chances for a rebound are still quite high, just like after every other sell-off, but the bulls must be more decisive or the chance will be gone.
Let's now take a look at the SP500 technical picture at the H4 time frame. The market has almost hit the level of 264.12 and then bounced. The bulls have broken above the nearest technical resistance at the level of 270.32 and made a new local high at the level of 271.89 and now are testing the support from above. Due to the oversold market conditions, there is still a chance for the bounce continuation, but the weak and negative momentum is indicating, that the target might be located at the level of 274.40 only.
