The S&P500 futures index is likely to recover some losses on Monday after falling sharply for three days in a row as 3851.5 is proving to be a barrier for sellers to overcome. In a larger picture, however, this major average has been in a downward trend since January and is on track to post its worst year since 2008.
According to the daily chart, intensifying bearish sentiment has caused the market to penetrate both the 100-Day and 50-Day exponential moving averages by breaking 3914.3. As looming recession fears continue to weigh on stocks, this barrier may not hold, with sellers aiming for the lower support at 3771.6, located at the Fibonacci 161.8% projection from the last upswing between December 8 and December 13. In the event that sellers become able to move below this hurdle, the 3683.4 will be waiting to face the decline.
Alternatively, if buyers were to regain control again, the 3914.3 mark would be claimed by them, which would be in line with the influence of the moving averages.
Momentum oscillators show a bearish bias over the short term. The RSI is moving into a selling zone. Momentum is hovering below the 100 mark, and MACD bars are about to cross zero into the negative zone.
The content of this material and/or any information provided should in no way be construed, expressly or by implication, directly or indirectly, as advice, recommendation, or suggestion of an investment strategy in relation to a financial instrument and is not intended to provide a sufficient basis for making investment decisions in any way. Any information, views or opinions presented in this material have been obtained or derived from sources believed to be reliable, but Errante makes no warranty as to their accuracy or completeness. Errante accepts no liability for losses arising from the use of this data and information. The data and information contained herein are for background purposes only and make no claim to be complete or comprehensive.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.