The stock market is gearing up for a relief rally after an interest rate-driven decline that sent the S&P 500 lower by 8% over the past two months.
That’s according to Fairlead Strategies’ founder Katie Stockton, who said in note to clients that various technical indicators hit “oversold extremes” on Tuesday after a crescendo of panic selling.
“After [Tuesday’s] emotional trading we think we are one step closer to a short-term low,” Stockton said, highlighting that key levels of support for the S&P 500 are now in play. Stockton identified the S&P 500’s 200-day moving average at 4,203, as well as the 4,180 to 4,195 as key levels of support to watch, all of which are about 1% below current levels.
