September 22, 2021 (Investorideas.com Newswire) The S&P 500 index closed nearly flat on Tuesday following Monday’s sell-off and late-day rebound off the 4,300 worth stage. Is the correction over?
The S&P 500 index fell the bottom since July 20 on Monday, because it reached the day by day low of 4,305.91. It was 239.9 factors or 5.28% beneath the September 2 report excessive of 4,545.85. We have witnessed an intraday rebound because the market closed round 52 factors above the day by day low. And on Tuesday it obtained again to the 4,400 worth stage earlier than closing 0.08% decrease, at 4,354.19.
The closest essential support level of the broad inventory market index is now at 4,300-4,330 and the subsequent help stage is at 4,200. Then again, the closest essential resistance stage is now at 4,400-4,450, marked by the earlier help stage. The S&P 500 broke beneath its over four-month-long upward pattern line, as we will see on the day by day chart (chart by courtesy of http://stockcharts.com):
Medium-Time period Downward Reversal or Only a Correction?
The S&P 500 index broke beneath its medium-term upward pattern line just a few weeks in the past. On Monday it fell to the closest essential help stage is of 4,300, as we will see on the weekly chart:
Dow Jones Stays Comparatively Weak
Let’s check out the Dow Jones Industrial Average chart. In early September the blue-chip index broke beneath a two-month-long rising wedge downward reversal sample. It remained comparatively weaker in August – September, because it did not attain new report excessive just like the S&P 500 and the Nasdaq. And on Monday it fell beneath its July native low of round 33,740 earlier than bouncing again to the 34,000 mark. The resistance stage is now at 34,000-34,500, and the help stage stays at round 33,500, as we will see on the day by day chart:
Apple Is On the Earlier Native lows
Apple inventory weighs round 6.3% within the S&P 500 index, so it is necessary for the entire broad inventory market image. In early September it reached a brand new report excessive of $157.26. And since then it has been declining. So it appeared like a bull lure buying and selling motion. On Monday the inventory offered off to the earlier native lows alongside $142 worth stage. They act as a help stage. Then again, the resistance stage is at round $145-146, marked by the latest native lows.
On Monday, the S&P 500 index accelerated the downtrend from the early September report excessive and yesterday it bounced to the 4,400 worth stage earlier than closing nearly flat. It appeared like a short-covering rally and a short-term upward correction. Right this moment, we may have the essential FOMC launch at 2:00 p.m. We’ll possible see an elevated volatility and the index might fluctuate inside its Monday’s day by day buying and selling vary.
There have been no confirmed optimistic alerts up to now. Due to this fact, we expect that the quick place is justified from the danger/reward perspective.
This is the breakdown:
- The market accelerated its downtrend on Monday, because the S&P 500 index obtained near 4,300 stage.
- Our speculative quick place remains to be justified from the danger/reward perspective.
- We expect some extra downward strain and a correction to 4,200-4,250 stage.
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