SPY Technical Analysis for Wednesday August 16, 2023
Bearish Trend Returns, Key Resistance and Support Levels Outlined
US Stocks Drop Intensifies, S&P 500 Breaks Momentum Streak: Inflation Concerns Loom
The drop in US stocks intensified in Tuesday's final hour of trading, reflecting ongoing concerns about the Federal Reserve's battle against inflation. Investors responded by buying the dip in short-term US bonds. This contributed to a 1.2% drop in the S&P 500 Index, pushing it below its 50-day average price for the first time in over three months and breaking a momentum streak not seen since September 2020.
Concurrently, the Nasdaq 100 fell 1.0% as US retail sales unexpectedly rose, signaling that the economy might withstand higher rates and influencing policymakers' decisions. Financial sectors contributed to the market downturn following Fitch's warning of potential downgrades for larger lenders like JPMorgan or Bank of America. Discover Financial Services performed poorly after its CEO resigned.
There is growing apprehension among investors that consumer-facing companies may soon lose their ability to control pricing as the delayed effects of the Fed's tightened policy take effect.1
Bears Flip 443.30 - 443.80 H1_ob+ as 446.63 Pivot Comes into Play
We hit the -1.5 SD (442.55).
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