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S&P 500 Is Under Pressure As Tech Stocks Are Moving Lower

By:
Vladimir Zernov
Updated: Nov 30, 2022, 07:28 UTC

NASDAQ Composite made an attempt to settle below 10,950.

S&P 500

In this article:

Key Insights

  • The pullback in tech stocks is led by Apple, which is losing ground amid reports that protests in China hurt shipments of iPhone Pro. 
  • Energy stocks rebound as OPEC+ is reportedly ready to keep production at current levels. 
  • A move below the 20 EMA will push S&P 500 towards the support at 3920.

S&P 500 Settled Below The Support At 3960

S&P 500 declined towards the 3950 level as tech stocks remained under pressure. The tech-heavy NASDAQ Composite is down by 0.8% in today’s trading session.

Apple is down by 2% amid reports that iPhone Pro shipments may be lower than expected due to protests in China. Amazon  is also under pressure, and it looks that traders are concerned about the company’s performance in the fourth quarter.

Treasury yields are moving higher, which is bearish for growth stocks. The yield of 10-year Treasuries is trying to settle above the 3.75% level. In case this attempt is successful, it will move towards the 3.80% level, which will be bearish for S&P 500 and NASDAQ Composite.

Meanwhile, energy stocks rebound as WTI oil prices have settled above the $78 level. The rebound is led by Halliburton, APA Corporation, and Schlumberger.

From a big picture point of view, S&P 500 will not be able to develop sustainable upside momentum if leading tech stocks remain under pressure. In this light, traders should monitor the developments in Treasury markets as tech stocks are sensitive to changes in Treasury yields.

At this point, it looks that the yield of 10-year Treasuries may have found strong support in the 3.65% – 3.70% area, and traders must watch whether it will be able to gain momentum in the upcoming trading sessions.

S&P 500 Attempts To Settle Below The 20 EMA

S&P 500

S&P 500 managed to get below the support level at 3960 and is trying to settle below the 20 EMA at 3935. In case this attempt is successful, S&P 500 will move towards the next support level at 3920. A move below this level will open the way to the test of the support near the 50 EMA at 3885. If S&P 500 declines below the 50 EMA, it will head towards the support at 3860.

On the upside, the previous support at 3960 will serve as the first resistance level for S&P 500. A move above 3960 will push S&P 500 towards the resistance at 4000. If S&P 500 gets above 4000, it will head towards the next resistance at 4015.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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