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S&P 500 (SPY) Retreats As Recession Fears Grow

By:
Vladimir Zernov
Published: Sep 23, 2022, 17:15 UTC

Energy stocks dive as WTI oil is down by 6%.

S&P 500

In this article:

Key Insights

  • S&P 500 is under strong pressure ahead of the weekend as traders sell riskier assets. 
  • The pullback is broad, and there are no safe-havens in the stock market. 
  • Energy stocks retreat as WTI oil tests multi-month lows. 

The Sell-Off Continues

S&P 500 is under strong pressure amid global market sell-off. Today, traders are selling everything and buying U.S. dollar, which is testing multi-decade highs.

Not surprisingly, all market segments are under strong pressure today. Energy stocks suffered a strong sell-off as WTI oil moved below the $80 level on recession worries. APA Corporation, Marathon Oil, Halliburton, and Schlumberger are down by more than 10% in today’s trading session.

Basic materials stocks have also been hit hard. The leading copper producer Freeport-McMoRan is down by 7% today. Fertilizer producers CF Industries and Mosaic are losing 6% in today’s trading session. Gold stocks, like Newmont Corporation, are also under pressure as gold tests new lows.

Among leading tech stocks, Meta, NVIDIA, Microsoft, and Alphabet are testing yearly lows. Treasury yields keep moving higher, which is bearish for tech stocks.

From a big picture point of view, the current sell-off is close to a real panic. Traders are moving out of various asset classes and transfer their funds into the U.S. dollar.

It should be noted that S&P 500 has lost more than 10% of its value in less than two weeks, so speculative traders will likely try to search for bargains. Even if the market is headed lower, sell-offs rarely go in a straight line, so traders should expect that the market will stay extremely volatile.

S&P 500 Tests Support At 3660

S&P 500

S&P 500 settled below the 3700 level and tested support at 3660. In case S&P 500 manages to settle below 3660, it will head towards the next support level, which is located at 3635. A move below this level will open the way to the test of the support at 3600.

On the upside, the previous support at 3700 will serve as the first resistance level for S&P 500. RSI is in the oversold territory, so the chances for a rebound are increasing. In case S&P 500 manages to climb back above 3700, it will head towards the resistance at 3725. A successful test of this level will push S&P 500 towards the resistance at 3750.

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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