The S&P500 started the week meeting a significant milestone: it was positive for the year! plus the Nasdaq Composite finally rose above 10,000 – but went downhill from there as it surrendered to profit-taking that turned to be the worst week since March.
The S&P 500 fell 4.8%, the Nasdaq fell 2.3%, and the Dow Jones Industrial Average fell 5.6%.
Most of the week’s losses came on Thursday with the S&P 500 declining 5.9% and rebounded on Friday. as there was no specific news that contributed to the decline, some blamed the Fed while others pointed to data showing increasing rates of coronavirus in many U.S. states reopening the economy in any case non of was really new news.
All S&P 500 sectors finished the week down, ranging from information technology down 2.0% to energy down 11.1%.
AlphaOverBeta Next Week Forecast
We predict the market is going to continue to be high volatility range trading in the coming days and weeks, the economy is not going well enough to sustain a major rally, BUT the fed and government is going to continue to pump liquidity into the markets and that alone that should support the current price levels. The market traders are not clear on the next market move as they were in previous weeks and this creates elevated levels of volatility .
We see the next key level as 2950 , and then 2800.