- The S&P 500 falls 1.11%, currently stands at 4,615.85.
- The Nasdaq and the Dow Jones lost between 0.44% and 1.74%, to 15,802.13 and 36,494.29, respectively.
- S&P 500 Technical Outlook: Still bullish, but a negative divergence between price action and RSI could send the S&P lower.
The S&P 500 fell during the New York session, at 4,615.85 points, down 1.02%, after the US producer price index for November registered its highest rise since 2010, following in the footsteps of the CPI of last week, as pressures mounted on the Federal Reserve to tighten monetary conditions, faster than expected.
S&P 500 Price Forecast: Technical Insights
The S&P 500 remains in an uptrend, as shown on the daily chart, with the 50, 100 and 200 day moving averages (DMAs) below the price action. However, it appears to be forming a double top around 4700, which coincides with a negative divergence in the Relative Strength Index (RSI), which at time of writing is below the 50 midline, at 49.
In case of breaking down, the first support would be the 50 DMA at 4591.13. A break of this last level would expose the confluence of the low of December 3 and the DMA of 100 around the range of 4500-4515.84, followed by the intersection of the low of October 13 and the DMA of 200 around the zone of 4325-4341.31.
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