If we pay attention to the global benchmark index US500, it may be concluded that the stock market is fine in general. Of course, there is no uncontrollable over-hyped optimism, but the panic sales also have become a thing from the relatively distant past.
And all this happens despite the remaining risks of high inflation and geopolitical upheavals.
The index has been corrected from the previous local support on the level of 4460 and it has gone for the third round trying to overcome the resistance of 4600. Time will show, will it be able to do this in the next month. But the fact is that the unwinding informational flywheel of “unprecedented inflation pressure” couldn’t break the market.
And as mentioned earlier, April is traditionally a month of the strong stock market, and this fact in itself works as psychological support in the investment environment.
Coronavirus threats, for the most part, have been exaggerated, and they have remained in the past.
Excessive liquidity will be absorbed by world markets over time.
Over the last month, the market has cleaned itself from the weakest market participants.
Based on this, I see the nearest target for US500 at level 4730.