S&P 500 (SPX) steady, but pressure remains
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- S&P 500 declines on rising yields from strong ISM.
- Oil price collapse hits energy sector hardest.
- FOMC next week is likely to result in hesitant trading.
Oil stocks took a hammering on Monday as oil fell off a cliff, and overall equity sentiment was weak to begin with. XLE closed down 3%, while XOP was down 4% (oil and gas explorers). Defensive names outperformed, and not surprisingly JETS also held up due to falling oil prices.
S&P 500 (SPX) news
Expect more choppy trading with little clear direction before next week's FOMC. Investors are largely dawning on the reality that the dot plot is likely to be shifted upwards. Something the Fed has been saying ad nauseam for the past few months. However, rightly so that the Fed's credibility is shot, so their actions speak louder than words. Already the RBA has hiked and erred on the hawkish side. On Wednesday we will see how the BOC performs. Oil prices and a calming of yields could see equities recover modestly on Tuesday, but any large gains are unlikely. The Goldman Sachs Financials conference kicks off Tuesday, so keep an eye out for comments on outlook, etc.
S&P 500 (SPX) forecast
So far there has been a failure to break channel resistance, and now the SPX targets the 3,946 to 4,031 range. This is the base case before next week's FOMC. The RSI remains in neutral with little signaling.
SPX daily chart
- S&P 500 declines on rising yields from strong ISM.
- Oil price collapse hits energy sector hardest.
- FOMC next week is likely to result in hesitant trading.
Oil stocks took a hammering on Monday as oil fell off a cliff, and overall equity sentiment was weak to begin with. XLE closed down 3%, while XOP was down 4% (oil and gas explorers). Defensive names outperformed, and not surprisingly JETS also held up due to falling oil prices.
S&P 500 (SPX) news
Expect more choppy trading with little clear direction before next week's FOMC. Investors are largely dawning on the reality that the dot plot is likely to be shifted upwards. Something the Fed has been saying ad nauseam for the past few months. However, rightly so that the Fed's credibility is shot, so their actions speak louder than words. Already the RBA has hiked and erred on the hawkish side. On Wednesday we will see how the BOC performs. Oil prices and a calming of yields could see equities recover modestly on Tuesday, but any large gains are unlikely. The Goldman Sachs Financials conference kicks off Tuesday, so keep an eye out for comments on outlook, etc.
S&P 500 (SPX) forecast
So far there has been a failure to break channel resistance, and now the SPX targets the 3,946 to 4,031 range. This is the base case before next week's FOMC. The RSI remains in neutral with little signaling.
SPX daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.