S&P 500 plunges more than 1% as Jackson Hole kicks off


  • The SPX erased all of Wednesday’s gains, retreating to 4,380.
  • Thomas Barkin and Susan Collins sounded hawkish at the start of the Jackson Hole Symposium.
  • All eyes are now on Friday’s speech by Jerome Powell.

On Thursday, the US stock market saw losses driven by a stronger USD, boosted amid hawkish remarks by Federal Reserve (Fed) officials at the Jackson Hole Symposium

Thomas Barkin stated that the Fed will keep rates where they are for the rest of 2023 and push rate cuts to 2024. In addition, Susan Collins commented that “more rate hikes are possible” which made markets place bets on a more aggressive Fed. In line with that, US yield rose, making stocks lose interest. The 2-year rate rose to 5%, while the 5 and 10-year rates increased to 4.44% and 4.23%, respectively.

Eventually, it will come down to the next set of data that the Fed will receive, including an additional jobs report and inflation reading. Powell’s words on Wednesday will also be closely watched for investors to model their expectations.

SPX Levels to watch

The daily chart suggests that the SPX displays a neutral to bearish outlook. The Relative Strength Index (RSI) points south in negative territory, while the Moving Average Convergence Divergence (MACD) prints red bars. However, the index remains above the 100 and 200-day Simple Moving Averages (SMAs), indicating that the bull retains control of the bigger picture.

Support Levels to watch: 4,350, 4,330, 4,310 (100-day SMA).

Resistance Levels to watch: 4,400, 4,460 (20-day SMA), 4,480.

SPX Daily chart

 

SP 500

Overview
Today last price 4374.53
Today Daily Change -60.86
Today Daily Change % -1.37
Today daily open 4435.39
 
Trends
Daily SMA20 4473.59
Daily SMA50 4459.8
Daily SMA100 4314.22
Daily SMA200 4147.57
 
Levels
Previous Daily High 4441.51
Previous Daily Low 4387.71
Previous Weekly High 4498.48
Previous Weekly Low 4337.34
Previous Monthly High 4607.11
Previous Monthly Low 4375.8
Daily Fibonacci 38.2% 4420.96
Daily Fibonacci 61.8% 4408.26
Daily Pivot Point S1 4401.56
Daily Pivot Point S2 4367.74
Daily Pivot Point S3 4347.76
Daily Pivot Point R1 4455.36
Daily Pivot Point R2 4475.34
Daily Pivot Point R3 4509.16

 

 

 

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