S&P 500 at Key Retracement Level
The S&P declined -35% off the February highs to the 23 March low, and Thursday it closed +29% off the March low. This 50% retracement has thus recaptured 1/2 of the recent losses for the index. The halfway mark is also at the level of the 50-EMA where resistance will be tested. Thursday was a "churn" day for the S&P and Nasdaq, which often precedes a short-term change of direction. Exercise some caution until we see how the market reacts at this retracement level.