Today's S&P 500 close could be crucial
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: Staying above a key support level at 2,635 is very important for the S&P 500 right now and if it manages stronger advances then a Santa Claus rally may happen.
If the S&P can close above 2,635 we are likely to see a bounce towards 2,750. A close above 2,764 could provide fuel in the short term (a Santa Clause rally ?) towards 2,850-2,900. But before that scenario could unfold, the gap down from yesterday needs to be closed ie. a close above 2,691.
If bears manage to close the Index below 2,635 a renewed massive sell-off is likely to be initiated. Bargain hunters might try lifting the market once again but if the weekly close is also below the support level, the picture will be even more bleak for equities.
I’d expect a minor rebound today: RSI seems to find some support at the rising trend line and there is in fact divergence since the end of October. Closing the gap from yesterday, however, is likely to be a struggle.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)