Correction attracts buyers
Buyers have returned to the markets with fresh capital. Last week’s most threatening trends had reversed, giving way to a recovery in demand for risk before the situation got out of control.
In the US debt markets, long-term government bond yields are falling, reaching 1.4% for UST10 compared with a peak at 1.61% at some point on Thursday.
The S&P500 and DowJones30 have held their first line of defence. Investors strengthened buying on the intraday declines below the 50-day average and the round levels 3800 and 31000 on Friday, respectively.
Previously, we saw a similar slump in the indices at the end of January. There was then a bearish signal on the technical analysis, but that didn’t stop the markets from going back up and making new highs in February.
https://fxpro.news/daily-economic-events/correction-attracts-buyers-markets-turn-upward-20210301/
