S&P 500 Price Analysis: The S&P 500 crashes 2.5% and drops below 3,500

The S&P 500 drops over 2.5% as the Nasdaq traded over 5% lower at one stage.
Tech firms have been hit hard with Apple falling over 5%.

Rajan Dhall, MSTA FX Daily

S&P 500 30-minute chart

The US indices have sold off heavily on Thursday and they have also managed to drag down the Dax that was positive for most of the EU session. Some analysts have noted profit-taking as the main cause but ahead of tomorrow's US non-farm payroll data but there has been some soft data today as initial jobless claims missed expectations.

NVIDIA, Apple, AMD and Adobe are all trading over 5% lower in the S&P 500 index. Doubts about the US government agreeing on fiscal stimulus measures are also in investors minds after Senate Majority Leader Mitch McConnell raised concerns if Congress can get a deal at all. He stated, “I don’t know if there will be another package in the next few weeks or not,” and then went on to say that talks between top administration officials and House Speaker Nancy Pelosi haven’t been fruitful.

Looking at the chart, the price has bounce off the black support level at 3,451.77 and now all eyes will be on the red resistance zone at 3,500. If the price can break the 3,500 level by the time the market closes maybe it will give the bulls some hope. On the downside, if the aforementioned support level is broken may be the sell-off might continue leading into the NFP data on Friday.

The Relative Strength Index indicator has moved into the oversold zone. This does not necessarily mean the price will bounce make but the market might take a small breather before continuing lower. The MACD confirms the bearishness as the histogram is firmly in the red and the signal lines have crossed to the downside.

Longer-term the trend is still very much up. This could just be a small blip in an otherwise strong uptrend. For now, traders and investors will need to watch for further signs that the retracement could turn into a full-blown trend change.

Additional levels

SP 500

Overview
Today last price	3482.5
Today Daily Change	-85.25
Today Daily Change %	-2.39
Today daily open	3567.75

Trends
Daily SMA20	3420.99
Daily SMA50	3285.27
Daily SMA100	3130.18
Daily SMA200	3089.76

Levels
Previous Daily High	3570.5
Previous Daily Low	3537.5
Previous Weekly High	3508.5
Previous Weekly Low	3411.75
Previous Monthly High	3522.75
Previous Monthly Low	3264.25
Daily Fibonacci 38.2%	3557.89
Daily Fibonacci 61.8%	3550.11
Daily Pivot Point S1	3546.67
Daily Pivot Point S2	3525.58
Daily Pivot Point S3	3513.67
Daily Pivot Point R1	3579.67
Daily Pivot Point R2	3591.58
Daily Pivot Point R3	3612.67

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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