Market Analysis (22 April’21)

U.S. stocks dropped Thursday on news reports that President Biden is considering nearly doubling capital gains taxes on the wealthy. Mr. Biden is planning a capital gains tax increase to as high as 39.6% on the wealthiest Americans, an increase from the current 20%.

S&P 500

The S&P 500 futures have been potentially forming yet another bullish formation on its hourly chart during the last 6-7 trading sessions: a Bull Wedge. For this pattern to play out, ES needs to hold above today’s lows during the next 2-3 sessions and eventually move above the 4200 level.

ES, 1h

The bullish narrative is supported by the SPXA50r indicator which didn’t confirm today’s low (see chart below).

SPXA50r and SPX, 15m

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