After months of historic drops all across the market, the S&P 500 has begun its turnaround. It’s been a wild couple of months across financial markets world wide and it’s only natural that investors want to know what comes next. The answer isn’t straightforward however, and there are many factors that will take shape as the recovery continues.
In order to get a better sense of what we can expect in the near future, it’s important to take a closer look at the charts. Let’s examine 3 key charts to get an idea of what the S&P 500 recovery will look like over the coming weeks and months.
First, we’ll look at the CISIQ chart. This chart shows the change in the S&P 500 since it hit its peak in February 2020. As you can see, the index has been steadily climbing since it hit its all-time low in March. This chart suggests that investors have some confidence in the market’s ability to recover in the short term.
The next chart we’ll look at is the University of Michigan Index of Consumer Sentiment. This index is a measure of how American consumers feel about the current state of the economy. As you can see, this graph shows a decline in consumer sentiment from January to April. This chart suggests that consumer confidence is still being affected by the overall economic climate.
Finally, we’ll look at the VXN chart. This chart shows the volatility of the S&P 500 since the index started to rise in March. As you can see, the VXN has been steadily declining since its peak in April. This suggests that the market has become increasingly stable over the past few months.
Each of these charts provides valuable insight into the S&P 500’s current recovery. They suggest that while the index has made significant gains, there is still some uncertainty in the market. In order to accurately assess the impact of the recovery, it’s important to watch these three charts closely in the coming weeks.
The S&P 500’s turnaround has been a welcome sight to investors after the tumultuous few months of 2020. With the right information, it’s possible to see what the next steps may look like in the recovery. By examining the CISIQ chart, the University of Michigan Index of Consumer Sentiment, and the VXN chart, investors can get a better idea of where the S&P 500 is headed. As long as these three charts continue to trend in the positive direction, it’s likely that the market will continue to improve in the coming weeks and months.
