S&P 500 Index: Sustained rise in volatility to accompany a fall – Credit Suisse

S&P 500 stays critically placed on its 63-day average at 3391, a close below which should clear the way for further near-term weakness as well as reinforce a broader sideways range into the US election, with key support seen starting at 3324 and stretching down to 3298/96. The VIX spotlight turns to key resistance at 37.20/38.28, above which would see a significant base established to mark a more concerning rise in volatility and likely market weakness, per Credit Suisse.

See – 2020 US Elections: S&P 500 to dive to 3100 in early January on a Blue Wave – Morgan Stanley

Key quotes

“The S&P 500 stays critically placed, sitting right on its 63-day average at 3391 and with support from the ‘neckline’ to the ‘head & shoulders’ base removed the immediate risk is seen lower.”

“A close below 3391 should confirm the base has indeed been neutralized to reassert the sideways range from the early September peak with support then seen next at 3365 ahead of the late September price gap, starting at 3324 and stretching down to 3298/96, also the uptrend from mid-June. We would look for a fresh floor here.”

“Near-term resistance stays seen at 3410/15, then the 13-day average and short-term downtrend at 3436/41, which we look to cap. Above 3466 though stays needed to reassert a positive tone, with resistance then at 3516/18.” 

“The VIX has surged higher to turn the spotlight on key trend/price resistance at 37.00/38.28. A close above here would see a base complete to warn of a more significant rise in volatility and accompanying fall in the market itself.”


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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh two-month highs amid dollar weakness

EUR/USD has hit new two-month highs above 1.1940 as the dollar resumes its decline. Optimism about the US transition and covid vaccines is weighing on the safe-haven dollar. 


GBP/USD falls toward 1.33 amid Brexit acrimony

GBP/USD is falling toward 1.33 as both the EU and the UK are busy blaming each other for an impasse in Brexit talks. The thorny issues remain fisheries, governance and setting a level playing field.


XAU/USD attempting to bounce up from $1,775 low

Gold futures accelerated heir downtrend from last week highs near $1,900, breaking below the 200-day SMA, at $1,800 area, to hit its lowest prices in nearly five months, at $1,775.

Gold news

Dollar offered ahead of the weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy. In the Asia Pacific, only Australia and India did not end the week on a firm note.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info