S&P 500 PRICE OUTLOOK: STOCK MARKET PULLS BACK FROM RECORD HIGHShares are reversing exhausting from all-time highs with S&P 500 worth moti
S&P 500 PRICE OUTLOOK: STOCK MARKET PULLS BACK FROM RECORD HIGH
- Shares are reversing exhausting from all-time highs with S&P 500 worth motion down over -1%
- The S&P 500 Index is searching for confluent assist across the 4,300-price stage
- Eyes on Fibonacci retracements, the 14 June excessive, rising trendline, and MACD crossover
S&P 500 worth motion took a nasty tumble on the New York opening bell on Thursday. Shares slid throughout the board because the VIX ‘fear-gauge’ exploded increased. All main inventory indices are buying and selling within the pink and down round -1% on the session.
The transfer is corresponding with an prolonged plunge in bond yields with the ten-year Treasury nosediving over 15-basis factors since Monday to 1.3%. As such, it appears fairness buyers are lastly catching on to the fears of slowing financial progress being mirrored within the bond market.
Since Wall Road got here on-line, nevertheless, the S&P 500 Index has chopped across the psychologically-significant 4,300-price stage. This space of confluent assist is underpinned by the 23.6% Fibonacci retracement stage of the S&P 500’s buying and selling vary from 12 Might to 07 July.
SPX – S&P 500 INDEX PRICE CHART: 4-HOUR TIME FRAME (30 APRIL TO 08 JULY 2021)
Chart by @RichDvorakFX created utilizing TradingView
Sustaining altitude right here may encourage S&P 500 bulls to shut the hole decrease from this morning’s open. Though, if promoting strain resumes and the 4,300-handle is breached, merchants may look to defend assist underpinned by the 14 June excessive and 4,255-price stage.
Sustained downward strain may see a bearish MACD crossover materialize as hinted at on the 4-hour chart above. This may deliver the ascending trendline and 50-day easy transferring common into focus as subsequent technical boundaries with potential of serving to maintain S&P 500 worth motion afloat.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
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