S&P 500
S&P 500 started the week lower as the U.S. crude oil price slumps over 38% to $11 per barrel as the demand plunge amid the coronavirus crisis while the market runs out of oil storage facilities. Economic advisor Harry Kudlow hit the wires saying that President Trump has “aspirational goal” to reopen the economy by May 1st.
The Chicago Fed economic index came in at -4.9 in March down from 0.06 in February. Factories production declined to -2.72; all four broad categories of indicators made negative contributions to the index in March.
S&P 500 index dragged down by Occidental Petroleum Corp. -6.68% at 12.72, United Rentals -4.84% at 99.97, Atmos Energy Corp. -4.49% at 105.73 and Helmerich & Payne -4.49% at 16.87. On the other hand, Netflix is 4.83% higher at 443.37, Carrier Global +5.02% at 14.43, Alexion Pharmaceuticals +3.21% at 106.80 and Align Technology +2.34% at 197.51.
The CBOE Volatility index trading 2.38% higher at 40.53, the Dow Jones is 1.01% lower at 23,998, while the Nasdaq is 0.11% higher at 8,663.
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S&P 500 is 0.57% lower at 2,858 as the index trades above and below the critical 50-day moving average resistance. On Friday the index managed to settle above 2,850 but the correction today threats the recent rebound. The technical outlook remains bearish for the index, but a credible close above the 50-day moving average might attract a fresh wave of buying interest.
On the downside, the daily low at 2,814 will provide intraday support for the S&P 500 index. A break below 2,814, might open the way for 2,749 the low from April 16 trading session. If bears break this level, then the next support stands at 2,628 the low from April 8.
On the other side, the first hurdle for the S&P 500 index will be met at 2,881 the daily high. The next level to watch is at 2,887 the high from Friday’s trading session. A close above will give bulls the upper hand and a move to 3,014, the 200-day moving average will be the next target.