Despite a plethora of emergency measures taken by the global central banks, a fresh wave of panic selling is clearly visible in global equity markets; has pushed the markets towards new lows. Now, the investors look too worried to see an end of this panic, which is still continuing since its beginning from February 20th, 2020; and within a short span of time up to March 19th, 2020, just a period of one month, looks to have changed the situation for the bulls.
On analysis of the S&P 500 futures and SPX, in different time frames, I find that the SPX may be heading now towards the level of 2217; amid growing panic selling due to prevailing fear of economic impact over the Indian economy due to complete breakdown of the international supply chain. On the other hand, J.P. Morgan economists forecast, “the U.S. economy to shrink 14% in the next quarter, and the Chinese economy to drop more than 40% in the current one, one of the direst calls yet as to the scale of the fallout is no longer doubt that the longest global expansion on record will end this quarter,” they said in a note. “The key outlook issue now is gauging the depth and the duration of the 2020 recession.”
Finally, I conclude that the SPX may see some swinging moves from the lower levels amid this downward voyage, but the weekly closing levels on March 20th, 2020 will define clearer picture for the further directional moves of SPX during the upcoming weeks. I find that if the S&P 500 remains unable to defend the level of 2279 during March 2020, the next target for the Nifty might be 2217, as the steep fall in SPX much below the S&P 500 Futures makes the situation scarier for the upcoming days.
Watch my video
I posted this video on March 18th, 2019, while analyzing the movements of S&P 500 futures during the Market crash of 2008, in order to predict the next Market Crash. Let’s have a look at the current position of S&P 500 Futures in the same chart pattern on March 19th, 2020; after facing stiff resistance at the defined levels in March 2019.
S&P 500 Futures
S&P 500 Futures – Weekly Chart
S&P 500 Futures – Daily Chart
S&P 500 Futures – 4 Hr. Chart
S&P 500 Futures – 1 Hr. Chart
SPX – Monthly Chart
SPX – Weekly Chart
SPX – Daily Chart
SPX – 4 Hr. Chart
SPX – 1 Hr. Chart
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