|

The S&P 500 crashes below 3,000 moving conclusively below the 200 DMA

  • The S&P 500 has pushed 0.61% lower adding to the crash seen on Thursday.
  • The price has broken the 200 daily period Simple Moving Average to the downside.

S&P 500 daily chart

The S&P 500 has pushed lower again on Friday after trading in the black at the start of the session. The major US index sold off heavily on Thursday after news that the coronavirus cases could be increasing again in the US.

This seems like a strange narrative given the fact that the US has never got to grips with the COVID-19 pandemic from the get-go. It seems the market will attach itself to whatever themes it deems fit at the time. 

Looking closer at the technicals now, the price has moved below the psychological 3K level. Not only that, the 200 Simple Moving Average has now conclusively been broken to the downside. 

Those traders and analysts that look at wave patterns might not be too convinced though. A lower high has not been printed yet so this could just be a deep retracement but time will tell. 

On the indicator front, the Relative Strength Index has finally pulled away from the overbought zone and the MACD has printed red. The only ray of hope is the fact that the signal lines on the MACD are still above the mid-line. 

The trendline had a textbook retest and break lower on the lower timeframes. You can see the red diagonal line was broken on Thursday but on the hourly, it becomes apparent that the price came back to retest the zone before pushing lower. This is often the case when it comes to trendline breaks.

S&P 500 beaks 3000

Additional levels

SP 500

Overview
Today last price2986.75
Today Daily Change-28.50
Today Daily Change %-0.95
Today daily open3015.25
 
Trends
Daily SMA203046.62
Daily SMA502908.91
Daily SMA1002938.76
Daily SMA2003019.97
 
Levels
Previous Daily High3182.75
Previous Daily Low2998.5
Previous Weekly High3212
Previous Weekly Low3024.5
Previous Monthly High3069.5
Previous Monthly Low2768
Daily Fibonacci 38.2%3068.88
Daily Fibonacci 61.8%3112.37
Daily Pivot Point S12948.25
Daily Pivot Point S22881.25
Daily Pivot Point S32764
Daily Pivot Point R13132.5
Daily Pivot Point R23249.75
Daily Pivot Point R33316.75

Author

Rajan Dhall, MSTA

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

More from Rajan Dhall, MSTA
Share:

Editor's Picks

GBP/USD holds losses below 1.3550 after weak UK jobs data

GBP/USD holds losses below 1.3550 in European trading hours on Tuesday. The UK ILO Unemployment Rate held steady at 4.9% in the three months to June, against a forecast of 4.8%, while Employment Change arrived at 83K in the same period versus 147K previous. Weak UK labor data keep the British Pound under pressure, driving the pair lower.

EUR/USD stays below 1.1600 despite upbeat sentiment data

EUR/USD struggles to gain traction and trades below 1.1600 in the European session on Tuesday, even after the data from the Eurozone and Germany highlighted improving economic sentiment in August. The US Dollar (USD) benefits from the risk-averse market atmosphere as tensions in Middle East remain high, making it difficult for the pair to turn north.

Gold sticks to losses below $4,400 as USD recovers further from two-month low

Gold remains depressed below the $4,400 mark through the first half of the European session, snapping a two-day winning streak amid a broadly firmer US Dollar. Inflation risks stemming from higher oil prices back the case for at least one interest rate hike by the US Federal Reserve in 2026.

Pi Network holds steady amid app studio costs surge to push user adoption

Pi Network extends a consolidation range capped below $0.0900 holding above the $0.0839 support level. PI token remains under pressure as the Core Team pushes for real user adoption by raising costs for AI-powered app creation, effective from August 24. Leverage-linked risk exposure eases as Open Interest declines despite an increase in social interest.

Fiscal concerns and doubts on Fed independence send US yields to long-term highs

US Treasury yields keep rising across the curve this week, with the yield for the 30-year Treasury bond reaching its highest level since 2007, during the global financial crisis, at 5.33% so far on Monday. A mix of concerns about the ballooning US fiscal deficit and growing doubts about the Federal Reserve’s Independence are increasing pressure on US Government Bonds.

Why is Crude Oil priced for a reopening the ships haven't made?
Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.