- The S&P 500 is shedding 0.33%, at 4,684.81, as Target plummets.
- The Dow Jones Industrial follows the lead of the S&P, with a decrease of 0.50%, to 35,965.49.
- The high-tech Nasdaq Composite rose 0.19% to 16,338.50, led by Apple and Tesla.
The S&P 500 it’s down from Tuesday’s highs, down 0.33%, currently at 4,684.81 during the American session at the time of writing. The mood of the market is in risk aversion mode, reflected by the fall of the main US stock indexes The Dow Jones Industrial Average (DJIA) also falls 0.50%, to 35,965.49, while the Nasdaq Composite is up 0.19% to 16,338.50.
On Wednesday, the US economic calendar featured housing data, which was mixed. Building permits for October rose to 1.65 million, above the 1.638 million expected by analysts. On the contrary, the beginnings of Housing for the same period slowed down to 1.52M, below the 1.576M forecast.
Once the data was released, it appeared that traders took some bets off the table as construction slowed, implying that high material prices and labor shortages are to blame. Meanwhile, Nasdaq’s rise of big-tech is led by a rally at Apple and Tesla.
By sector, consumer discretionary and health advanced 0.63% and 0.26%, respectively. On the other hand, the main losers are energy, finance and industry, losing 1.42%, 1.26% and 0.88% each.
In the bond market, the US 10-year yield falls one basis point to 1.616%, undermining the US dollar index, which is down 0.12% on the day, to 95.80.
S&P 500 Price Forecast: Technical Outlook
The daily chart shows that the S&P 500 has an upward bias, confirmed by the daily moving averages (DMAs) well located below the value of the index, with an upward slope. However, the Relative Strength Index (RSI) is at 70, well within overbought conditions, suggesting that a lower correction could occur.
In the event of a correction, the first support would be the October 26 high at 4,598.53 that converges with the 78.6% Fibonacci retracement as the first support level. As a result of a further correction, the October 27 low at 4,553.53 would be the next demand zone.
SP 500 TECHNICAL SUPPORT / RESISTANCE LEVELS
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.