U.S. equities seem to be exhausted from their climb, and it looks like this stock index is gearing up for a major reversal.
Has the uptrend reached the bend at the end?
Check out these inflection points on the daily time frame!
S&P 500 Index (SP500): Daily
S&P 500 Index (SP500) Daily Chart by TradingView
In case you missed our latest market recap, you should know that the U.S. stock market is back in selloff mode again thanks to another slump in the tech sector and overall risk-off vibes.
In particular, Nvidia stocks led the decline with a massive 9.5% tumble, followed by shares of other chipmaker companies. Not even the likes of Alphabet and Netflix were safe from the rout!
The S&P 500 index recorded more than 2% in losses, dipping after its retest of the broken long-term ascending trend line visible on the daily time frame.
Does this mean that the U.S. equity index is in for a long-term downtrend?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on equities and market sentiment, then it’s time to check out the economic calendar and stay updated on daily fundamental news!The index is closing in on the nearby downside target at the pivot point level (5,464.65) and sustained bearish momentum could spur further losses to S1 (5,274.55) near its August lows.
The 100 SMA is above the 200 SMA, though, suggesting that the path of least resistance is to the upside or that there’s still a chance the long-term uptrend could resume.
Just keep an eye out for a move below the 100 SMA dynamic support, as this could be additional confirmation of a trend shift. Also stay on the lookout for major market movers this week, including the top-tier U.S. NFP release!