LIVE MARKETS-S&P 500 index: Don't get chopped by the chop

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

S&P 500 INDEX: DON'T GET CHOPPED BY THE CHOP

For a little more than two months now, short-term traders have had to navigate a number of distinct S&P 500 index .SPX swings that have, in the end, essentially led to a cloud of dust and little sustained trend.

The S&P 500 index ended Tuesday down 0.39% from its December 6 close. However, over this period, and into last Friday's intraday high, the benchmark index has seen 10 distinct swings - five up and five down - that has the price chart looking more like a meat grinder.

Additionally, on average, these swings have been pretty symmetrical. From peak to trough on an intraday basis, the five swings lower have averaged -3.6% over four trading days (tds). From intraday trough to intraday peak, the five swings higher have averaged 3.8%, also over 4 tds.

With this, weekly Bollinger Band width, a historical volatility measure, has collapsed to a more than five-year low, suggesting the SPX is especially ripe for its next trend.

Meanwhile, this week offers no shortage of event risks. Beside developments on the tariff front, Fed Chair Powell delivers his semi-annual testimony before Congress on Tuesday and Wednesday, and January CPI and PPI are due on Wednesday and Thursday.

The SPX ended Monday at 6,066.44:

In terms of support on the weekly charts, the 10-week moving average (WMA) is around 5,995, while the 20-WMA is around 5,940. The early February low was at 5,923.93 and the support line from the October 2023 trough is around 5,920 this week.

As for resistance, the index's record intraday high was at 6,128.18, while the monthly resistance line from the 1929 high is a major hurdle around 6,150 this February.

(Terence Gabriel)

FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:

WHAT MIGHT RECIPROCAL TARIFFS LOOK LIKE? - CLICK HERE

GAS BOOST: UKRAINE CEASEFIRE COULD CHARGE CHEMICALS - CLICK HERE

WORN-OUT INVESTORS DON'T KNOW WHAT TO DO - CLICK HERE

NEW HIGHS FOR DAX AND FTSE, LUXURY UP - CLICK HERE

BEFORE THE BELL: EUROPE STEADY AT PEAKS, UNICREDIT BEATS - CLICK HERE

OF TRADE WARS AND (EV) PRICE WARS - CLICK HERE