S&P 500 (SPX) eyes recovery in short week
- S&P 500 stalls on Monday as growth worries resurface.
- Nasdaq is the biggest loser as yields stabilize.
- Volumes light in a shortened week due to Thanksgiving.
The equity market continued to retreat on Monday as the Nasdaq lost 1%. Overall, volumes were light in a shortened week and a lack of news or data flow.
S&P 500 (SPX) news
Dell Technologies (DELL) has likely put another dent into the PC sector as it looks like the forecasts are well short of what Wall Street was hoping for. The stock is down again this morning in the premarket. News also out that Tesla (TSLA) is looking to cut prices in China will not help the beleaguered EV leader. Tesla stock has fallen sharply this month. The consumer sector is holding up, but the higher end is struggling as shown by Dell. Dell shares initially popped on results but dropped once the company spoke about its forecasts.
Urban Outfitters (URBN) showed more resilience at the lower price point for consumers. Retailers so far are holding up well, and today we get some more earnings from Dicks Sporting Goods (DKS), American Eagle (AEO) and others. So far European and Asian markets are holding up reasonably well. The FTSE is boosted by the recovery in oil prices, while China reopening hopes are being tested by the latest covid data. Investors, however, remain hopeful with seasonality, a hopeful factor being repeatedly cited. Not exactly comforting, but there we have it!
S&P 500 (SPX) forecast
The low volatility week continues with a small slide on Monday. The early test of the highlighted support zone was rejected, and that set the tone for a quiet day closing modestly lower. That support zone remains at 3,900 to 3,880 and is the pivot for Tuesday. Futures are completely flat, so they are not giving us many clues. The more we stay around the pivot then it seems more likely that we will seek to fill the gap to 3,859.
S&P 500 daily chart
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
