The S&P 500 Index is trading sharply lower this Monday, wiping off the recovery gains of Friday as the index came under intense selling pressure two hours into trading.
This selloff has been caused by a decline in the major technology stocks, sending the S&P 500’s Technology index lower by 2.85% on the day. Stocks of Twitter, Facebook are sharply lower, with the latter facing a global outage of its WhatsApp and Instagram apps.
Semi-conductor stocks Nvidia and AMD lost big as well, shedding 4.96% and 2.17%, respectively. As of writing, the S&P 500 index was down to 15-week lows, down by 1.57%.
The decline in the S&P 500 has broken the lows of the last ten candles on the daily chart. This move opens the door for a descent to the 4257.90 support. If the decline continues below this level, 4166.91 and 4120.48 could come into the picture, with 4200 serving as a potential pitstop.
Recovery on the index requires a break of the descending trendline formed by the highs of the last six sessions. This move could stem from a bounce that needs to take out 4324.44, allowing 4368.58 and 4393.03 to become potential upside targets. An advance beyond 4422.92 and 4480.90 is required before the all-time high can come into the picture once more.
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