Indices: investors switched to buying on downturns despite extreme fear

Expert market comment made by Chief Market Analyst Alex Kuptsikevich of the FxPro Analyst Team: Indices: investors switched to buying on downturns despite extreme fear

Indices: investors switched to buying on downturns despite extreme fear

US stock indices have been under pressure, with the Nasdaq 100 losing about 6% over the week and the S&P 500 losing about 4.5%. While this is a wide range in normal times, the amplitude of the current swings is almost three times smaller than the previous week. Extreme fear continues to dominate the markets, but history shows that a return of the Fear and Greed Index to double-digit territory encourages investors to go into ‘buy on downturns’ mode, which maintains an upward bias even in the face of increased volatility and nervous trading patterns.

The S&P 500 continues to clash with the downtrend line formed over the past two months, but a strong bounce last week prevented a slide below the 200-week moving average, the most important support of the past 14 years. Previously, an approach or breach of this line has been accompanied by the launch of the Fed's emergency liquidity injection measures or a change in its policy. Additionally, on the daily charts, the RSI index has started to bounce off the lowest values seen since March 2020.

By the FxPro Analyst Team

规则: FCA (UK), SCB (The Bahamas)
read more
Fed minutes awaited as risk rally eases, dollar extends recovery

Fed minutes awaited as risk rally eases, dollar extends recovery

US dollar extends rebound, yen edges up too as bond yields creep up again. But stocks mixed amid persisting worries about US economy and debt. Kiwi up after RBNZ signals end of rate cuts, oil eyes OPEC decision. Can Fed minutes and Nvidia earnings turn around sentiment?
XM Group | 4小时12分钟前
Crypto market postpones rally

Crypto market postpones rally

Expert market comment made by Chief Market Analyst Alex Kuptsikevich of the FxPro Analyst Team: Crypto market postpones rally
FxPro | 7小时49分钟前
ATFX Market Outlook 28th May 2025

ATFX Market Outlook 28th May 2025

April saw the most significant decline in durable orders in six months, amid persistent uncertainties about tariffs. However, a rebound in the Conference Board’s Consumer Confidence Index provided a pleasant surprise. U.S. equities surged on Tuesday, buoyed by President Trump’s signals on tariff relief and improving consumer sentiment.
ATFX | 11小时22分钟前