LIVE MARKETS-S&P 500 index: Chart damage intensifies, traders eye support

ReutersJan 13, 2025 2:11 PM

U.S. equity index futures red; Nasdaq 100 down ~1%

Euro STOXX 600 index off ~0.7%

Dollar up; crude gains ~1.5%; gold falls; bitcoin down ~4%

U.S. 10-Year Treasury yield flat at ~4.77%

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S&P 500 INDEX: CHART DAMAGE INTENSIFIES, TRADERS EYE SUPPORT

The S&P 500 index .SPX suffered further technical damage last week. And with e-mini S&P 500 futures EScv1 losing around 35 points, or around 0.6%, ahead of Monday's open, traders are focusing in on the next support levels:

The S&P 500 ended Friday at 5,827.04 which marked its first close below its rising 20-week moving average, which finished at about 5,839, for the first time since early November 2023. This moving average will present a hurdle this week at around 5,845.

With this, the benchmark index closed down 4.32% from its 6,090.27 December 6 record closing high and down 4.47% from its 6,099.97 December 6 record intraday high.

On the daily chart, the SPX appears poised to fall below its 100-day moving average, which should be around 5,825 on Monday, the support line from its October 2023 low, which should be around 5,810, and Friday's low at 5,807.78.

A decline to 5,783.44 will fill the November 6 gap.

The November 4 low, established one day before the presidential election, was at 5,696.51. A decline to test this level would put the SPX down 6.6% from its record intraday high.

Meanwhile, traders who utilize time-based methodologies are on alert, given the 3x trend based Fib time projection from the date of the October 2022 bear-market trough is due in the last week of this month.

Since the market's October 2022 trough, the SPX has seen some spooky turns around the weeks that suggested the potential for a reversal of its most recent trend - Click Here.

(Terence Gabriel)

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FOR MONDAY'S EARLIER LIVE MARKETS POSTS:

THE RETURN OF THE "KANGABULL" - CLICK HERE

US INVESTORS BULLISH ON EUROPEAN AEROSPACE & DEFENCE - BOFA - CLICK HERE

HIGHER YIELDS BAD NEWS FOR EUROPEAN SMALL AND MID CAPS - CLICK HERE

HOW GERMAN ELECTIONS CAN AFFECT FINANCIAL MARKETS - CLICK HERE

EUROPE BEFORE THE BELL: FUTURES DOWN AS TRADERS EYE STRONG US ECONOMY - CLICK HERE

FORGET THE SOFT LANDING, JUST KEEP FLYING - CLICK HERE

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)

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