S&P 500 dips for first time in nine days, breaks below 4,700 on falling Tesla shares

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  • The S&P 500 fell for the first time in nine sessions, down 0.31%, to 4,687.74.
  • The Dow Jones loses 0.45%, currently trading at 36,266.80.
  • The high-tech Nasdaq Composite lost 0.38% to 15,921.68.

The S&P 500 it is sloping lower during the American session, down 0.31%, currently at 4,687.74 at the time of writing. The market mood is pessimistic as US stock indices fall between 0.31% and 0.60%, while in the forex market, investors flew into safe-haven currencies, boosting the Japanese yen, the Swiss franc. and the dollar.

Tesla shares fell 7% after Elon Musk conducted a poll over the weekend on Twitter asking his followers if it was a good decision to sell 10% of his Tesla shares, prompting a stock sell-off since on Monday. Additionally, Paypal’s losses hurt financial stocks after the company failed to meet revenue expectations.

Regarding the sector, the real estate sector and public services are the winners, rising 0.26% and 0.14%, respectively. On the other hand, the main losers are consumer discretionary and financials fell 0.89% and 0.79% each.

S&P 500 Technical Perspective

The daily chart shows that the S&P 500 has an upward bias, confirmed by the daily moving averages (DMA) well located below the value of the index, with an upward slope. However, the Relative Strength Index (RSI) is at 71, well within overbought conditions, suggesting that a lower correction could occur. In addition, it is testing the November 4 high of 4,683, which in the event of a daily close below the latter, would expose the October 26 high of 4,598.53 that converges with the Fibonacci retracement of 78.6% as the first level. of support. As a result of a deeper correction, the October 27 low of 4,553.53.

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