off-the-wire

LIVE MARKETS-S&P 500 index: Back on the back foot

Kitco Media
By Reuters
Published:
Updated:
Reuters



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U.S. equity index futures decline: Nasdaq 100 off ~0.7%

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Euro STOXX 600 index down ~1.2%

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Dollar, gold up slightly; crude gains >1; bitcoin slips

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U.S. 10-Year Treasury yield ~flat at ~3.68%

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at S&P 500 INDEX: BACK ON THE BACK FOOT (0900 EST/1400 GMT) Since early February, the S&P 500 index appears to be once again on the back foot. That said, traders are eyeing important support as they assess whether this weakness is just a pause in a developing bull-phase or whether more relevant damage is about to occur. Indeed, amid anxiety over earnings, the Fed, rising yields, and next Tuesday's much anticipated January CPI data, the SPX has now pulled back as much as 3% over the past five trading days. And now bitcoin's breakdown is adding to the cautious tone.


The SPX ended Thursday down around 36 points, or 0.9%, at 4,081.50, and premarket futures action suggests around 15 more points, or 0.4%, of downside in early trade: However, the SPX has support at its January 30 low at 4,015.55. And the 3,968-3,944 area is now packed with a number of important levels.


The rising 50-day moving average (DMA) should be around 3,968 on Friday, the broken resistance line from the SPX's record high, which should now act as support, will come in around 3,955 on Friday, the January 25 low was at 3,949.06, the support line from the October low will be around 3,945 on Friday, and the 200-DMA will resides around 3,944 on Friday. Breaking these levels could severely damage the uptrend off the October trough. Reversing back over the February 7 low at 4,088.39 can see the SPX refocus on resistance in the 4,195.44-4,203.04 area.


(Terence Gabriel)
***** FOR FRIDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EST/1400 GMT - CLICK HERE <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ SPX02102023 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Terence Gabriel is a Reuters market analyst. The views expressed are his own)

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