- The leading Wall Street indices have barely declined as the week begins.
- Energy stocks remain higher as crude oil continues to advance.
US stock indices they are falling during the American session amidst illiquid conditions with the money markets (US bond market) closed due to the observance of Columbus Day in the United States. The S&P 500 is down 0.10% to 4,388.26, the Dow Jones Industrial Average is down 0.16% to 34,691.57 and the high-tech Nasdaq Composite is down 0.04% to 14,814.58 at the close. of this edition.
Among the 11 sectors, Energy is up 0.17% due to the rise in crude oil prices, with Western Texas Intermediate (WTI) advancing almost 2%, trading at $ 80.65. On the other hand, the financial sector is down 0.11%, despite the rise in US bond yields and the prospects for a reduction in the Federal Reserve’s QE.
S&P 500 Price Forecast: Technical Outlook
The S&P 500 declined from yearly highs around 4,549, down from July 8 lows around 4,270. However, in the last week, the 100-day moving average (DMA) rallied around 4,370, boosting the “buy on the downturn” outlook.
On the S&P 500, a break above the 50-day moving average at 4,442 could open the door to a retest of the 2021 highs. In case of that result, the next resistance level would be 4,482, and then 4,550 highs. of 2021.
On the other hand, the failure of the 50 DMA coupled with a break below the 100 DMA could accelerate the slide towards the 200 DMA at 4,172 and above.
The Relative Strength Index (RSI) is at 48, indicating that the downward pressure remains, opening for an extension of the decline, perhaps towards the 200 DMA.
Additional technical levels