S&P 500 slumps as recession looms

A brief analysis of the fundamentals:

On Wednesday (May 18), the market evaluated the hawkish speeches of several Fed officials and the prospects of economic growth. The sell-off in European and American stock markets resumed. All 11 major sectors of the S&P 500 fell, and closed at 3914.55 points after a sharp break. Although a recession has not yet become a fait accompli, the risk of a recession in the U.S. economy for investors is "very, very high", and under pessimism, risk assets will be sold again.

S&P 500 SP500 4-hour chart

A brief technical analysis:

Looking at the 4-hour chart, the S&P 500 broke down after a slight correction, the previous gains were swallowed up, the moving average system turned downward, the MACD green column increased, the RSI indicator was flat, and the probability of a high and a fall within the day was high.

Long and short turning point: 4060.00

Resistance: 4200.00 4300.00

Support level: 3900.00 3800.00

Trading strategy: bearish below 4060.00, target 3900.00 3800.00

Alternative strategy: bullish above 4060.00, target 4200.00 4300.00