It is with great caution to look at this intraday recovery. SPX closed last week below the 200-day average that a sign of the sentiments of institutional investors and banks: they are not ready to believe in a further bullish market turn.
Usually, in the middle of the day, applications from mutual funds are executed on the American market, and retail investors are activated. They have pulled markets up in previous weeks and are determined to buy out the recent drawdown. However, at current levels, there may be no shortage of sellers.
The interest of retail investors is a very volatile thing. People willingly join the game when they see positive dynamics, but are very quickly disappointed without seeing positive changes in the account.
Separately, it is worth remembering that retail customers are much more limited in the use of borrowed funds. And the new capital (separately from paper profits) is entirely in doubt with unemployment jump. Also, the fundamental reasons for buying stocks are in question, because in the long term neither the inflationary threat nor the growth of dividend yield can be seen.
The FxPro Analyst Team