Dow Jones
Yesterday’s sharp decline in the S&P 500 index preceded a day of low volume trading with a slight decrease as investors start to exercise caution ahead of the US presidential election. As it is, any market optimism that hoped on the early passage of an additional coronavirus stimulus package has all but dimmed with barely a week to go. Furthermore, the continued spike in coronavirus cases worldwide continues to spook investors, who appeared to have taken ecosystems in the markets as she gives by the new volume of trade on the day.
The S&P 500 index is roughly 0.05% lower on the day as the energy index continues to falter, with a loss of 1.5%. This was countered by the consumer index, which traded higher by 0.5% at the time of writing.
The poor Consumer Confidence data cemented today’s lacklustre performance on the S&P 500 index. US consumer confidence fell from last month’s upward revision of 101.3 to 100.9. This figure was also worse than the 102.1 that markets had expected.
Yesterday’s decline found support at the neckline of 3933.5, as did today’s move. This is in tandem with last week’s analysis of the S&P 500 by Credit Suisse, which expects a recovery on the neckline bounce.
The price target from the neckline is expected to be at the 3588.1 all-time high. However, this target appears elusive, given the current market fundamentals at play. Any upside move towards this target would have to take out the 3481.6 and 3528.9 resistance targets.
On the flip side, a decline that breaks down the neckline of the reverse head-and-shoulders pattern will be on course to target the 3335.5 supports in the first instance, with 3482.2 and 3228.4 support areas lining up as additional targets to the south. This move would invalidate the pattern.
