Don't trust the stock-market bounce until S&P 500 is back above 3,800: analysts

Don't trust the stock-market bounce until S&P 500 is back above 3,800: analysts

U.S. stocks remain in bounce mode after the S&P 500 index tumbled last week to its lowest finish since December 2020, but many chart watchers remain unconvinced the uptick will prove to be anything more than another bear-market rebound. What would it take to change their minds? The 3,800 level on the index, which has so far proven to be stiff resistance, is in focus. “Since the beginning of last week, 3,800 has become a new ceiling for the S&P 500 as sellers have repeatedly stepped in and overwhelmed the tentative, weakhanded bids,” said Tom Essaye, founder of Sevens Report Research, in a Thursday note. The S&P 500 SPX, The price action around 3,800 is in keeping with the large-cap benchmark’s bear-market slide this year, Essaye observed. In early February, …
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