S&P 500 slides for the first time in nine days, breaks below 4,700 on lower Tesla shares

The S&P 500 edges lower during the New York session, down 0.31%, currently at 4,687.74 at the time of writing. The market mood is downbeat, as US equity indices drop between  0.31% and 0.60%, while in the FX market, investors flew to safe-haven currencies, boosting the Japanese Yen, the Swiss franc, and the greenback.

Tesla shares dropped 7% after Elon Musk held a poll over the weekend on Twitter asking his followers if it was a good decision to sell 10% of his Tesla shares, prompting a sell-off of the equity since Monday. Also, Paypal losses hurt the financial stocks after the company missed revenue expectations.

Sector-wise, real-estate, and utilities are the gainers, rising 0.26% and 0.14%, respectively. On the other hand, the main losers are consumer discretionary and financials down 0.89% and 0.79% each.

S&P 500 Price Forecast: Technical outlook

The daily chart depicts the S&P 500 has an upward bias, confirmed by the daily moving averages (DMA’s) well located below the index value, with an upward slope. Nevertheless, the Relative Strength Index (RSI) is at 71, well within overbought conditions, suggesting that a lower correction could happen. Furthermore, is testing the November 4 high at 4,683, which in case of a daily close beneath the latter, would expose the October 26 high at 4,598.53 that confluences with the 78.6% Fibonacci retracement as the first support level. In the outcome of a deeper correction, the October 27 low at 4,553.53.