S&P 500 index: A quick goodbye to this week's record highs
U.S. equity index futures mixed, little changed
Euro STOXX 600 index off ~0.4%
Dollar up slightly; bitcoin gains; crude slips; gold down >1%
U.S. 10-Year Treasury yield rises to ~4.24%
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S&P 500 INDEX: A QUICK GOODBYE TO THIS WEEK'S RECORD HIGHS
Since hitting record highs on Tuesday July 16, the S&P 500 index .SPX has had a rough two days. With this, the Market volatility index .VIX, known as Wall Street's "fear gauge," but which can also be viewed as a measure of uncertainty, is above 16 - its highest level since late April.
The sudden unease as the S&P 500 index nears the one-year anniversaries of its July 2023 highs (intraday high July 27, closing high July 31), has traders eyeing support. Indeed, in the wake of the July 2023 highs, the SPX suffered the deepest and longest decline (-10.9% over 13 weeks), since its October 2022 bear-market lows:
On Tuesday, the SPX hit a record intraday high of 5,669.67 before settling back to what is its record closing high of 5,667.20. At Thursday's intraday low, the index was already down 2.6% from its intraday peak. It ended Thursday at 5,544.59, which put it off 1.3% so far this week, and on pace for its biggest weekly drop since the mid-April market lows.
The broken weekly resistance line (log-scale) from the Y2K peak, which is now support, comes in at 5,500. The rising 10-week moving average (WMA) now resides around 5,430, while its daily proxy, the rising 50-day moving average (DMA), is now at 5,403.
The rising 20-WMA is at 5,289, and its daily proxy the rising 100-DMA is at 5,267. Of note, since closing back above the 100-DMA on November 10, 2023, the SPX has not ended a session below it.
The 100-DMA is now roughly 7.1% below this week's intraday peak.
(Terence Gabriel)
*****
FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:
THE BOE'S NEWEST RATE SETTER COULD HOLD THE DECIDING VOTE - CLICK HERE
UK TO BENEFIT FROM TECH ROUT, IMPROVING MACRO - CLICK HERE
BEIJING MAY HAVE TO ACCEPT LOWER GROWTH - CLICK HERE
SHARES DIP, CYBER OUTAGE IN FOCUS - CLICK HERE
SPX07192024E https://tmsnrt.rs/3W9H2ZN
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
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