Can the S&P 500 Hold its Trend After Wednesday’s Jarring Drop?
Yesterday could have been a significant day for the S&P 500. Let’s consider a few points.
First, the index fell 2.6 percent, its biggest drop since October 28’s 3.5 percent selloff. It’s also now slightly negative on a year-to-date basis.
Second, SPX made a new all-time high before 9:35 a.m. ET on Tuesday but ended lower. Followed by Wednesday’s slide to a 15-session low, the index is on track for a bearish outside week.
Third, prices closed on the trendline that began on November 10. It’s provided support at least three times since then. Will it hold again?
Beyond the S&P 500, the VIX jumped by 62 percent. That was its biggest one-day increase since February 2018.
At this point, investors may feel that a lot of good news is priced in. A good chunk of earnings are out and the Federal Reserve recommitted to low rates. Investors may be a little more cautious with a new month starting on Monday.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
First, the index fell 2.6 percent, its biggest drop since October 28’s 3.5 percent selloff. It’s also now slightly negative on a year-to-date basis.
Second, SPX made a new all-time high before 9:35 a.m. ET on Tuesday but ended lower. Followed by Wednesday’s slide to a 15-session low, the index is on track for a bearish outside week.
Third, prices closed on the trendline that began on November 10. It’s provided support at least three times since then. Will it hold again?
Beyond the S&P 500, the VIX jumped by 62 percent. That was its biggest one-day increase since February 2018.
At this point, investors may feel that a lot of good news is priced in. A good chunk of earnings are out and the Federal Reserve recommitted to low rates. Investors may be a little more cautious with a new month starting on Monday.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
