S&P 500 Bounces From Oversold Levels Despite War in Middle East: What's Next?

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S&P 500 Bounces From Oversold Levels Despite War in Middle East: What's Next?
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Stocks Analysis by Jani Ziedins covering: S&P 500, iShares Core S&P 500 ETF, SPDR® S&P 500, S&P 500 Futures. Read Jani Ziedins's latest article on Investing.com

But by midday, equity traders breathed a sigh of relief when oil prices only rose a few percent, allowing stocks to rebound and finish yesterday's session nicely in the green.

While no one can say if the bottom is in yet, we do know the market always overdoes things, which means at some point, this wave of reflexive selling will go too far, and then it will bounce hard. All of us who were savvy enough to buy last week’s bounce should be moving our stops well above our entry points, turning this into a low-risk/high-reward trade.

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