S&P 500 dips below 4,550, targeting recent lows of 4,500 with Omicron and fiscal stimulus pessimism in focus

• US indices are lower across the board on Monday, each down more than 1.5% on the session.
• Sentiment is hurt by concerns about Ómicron, a significant setback to US President Joe Biden’s economic agenda and the aggressive attitude of the Fed.

American stocks they are down across the board on the first trading day of the new week. The S&P 500, Nasdaq 100 Y Dow fell over 1.0% on the session, amid concerns about the rapid spread of the Omicron variant in Europe, a significant setback to US President Joe Biden’s economic agenda and an aggressive Fed. The S&P 500 opened below the 4,600 level on Monday and has since fallen completely below 4,550, where it is trading lower on the day by about 1.8%.

Equity bears will be considering a test of monthly lows in the 4,500 area if things continue as they are. The next major support below that would be October lows below 4,300, almost 6.0% below current levels. A pullback to these lows would mark a drop of nearly 10% from November’s record intraday highs of 4,750. A pullback from highs of more than 10% in US equities is considered a “correction.”

Looking at the other major indices; The Nasdaq 100 opened below 15,600 at the open and is now flirting with monthly lows in the 15,550 zone, where it is trading around 1.6% lower on the day. The Dow, meanwhile, has tumbled to the 34,700 area from opening levels closer to 35,250, where it is trading down around 1.9% for the session. Amid rising sales, the S&P 500 CBOE volatility index (often referred to as VIX) soared above 25.00, more than 4.0 points on the day and into two-week highs.

Technical levels