S&P500 Technical Analysis – Index At Key Level Prior To 2013 Trading
- S&P 500 futures are trading just above the key 1380 – 1384 technical zone in electronic trading today. This technical area marks the 61.8% Fibonacci retrace of 1340.25 > 1445.75, and the prior swing lows from late November to date.
- This previous price action support level could potentially come under pressure on Monday – when the cash markets open – if US lawmakers fail in their ongoing attempts to strike an agreement. This is needed in order to avoid a reported $600 billion in tax hikes and spending cuts which could hurt economic growth heading into 2013 .
- US stock market prices had plummeted on Friday, with extended losses noted during the last minutes of trading, as the prospects of an impending deal worsened before the weekend.
- Any sustained break lower would be a constructive technical development and potentially worthy of note when analysing the currencies – for any associated signs of decreasing risk appetite.
- The S&P500 index lost almost 2% last week with the Dow industrials closely aligned and likewise under pressure. The CBOE Volatility Index (VIX) had risen to the highest level seen since June, closing around 22.72. The VIX provides a measure of market expectations around near-term volatility as conveyed by S&P 500 stock index option prices.
- We will be monitoring this key S&P 500 1380 – 1384 technical area going forward for any relevant reversal or continuation price action hints.
- In related markets we note that gold is trading near the recent consolidation range highs at 1666.38 and the USDX (dollar index) is marginally higher on the day at 79.77.
S&P500 Technical Analysis Update - Daily Futures Chart
S&P 500 Analysis.