Nasdaq

S&P 500 Breaks Channel As It Opens Sharply Lower; 3645 Could Be Next

The S&P 500 index has opened sharply lower this Friday, after a disappointing report on its coronavirus vaccine candidate by Johnson & Johnson. 

According to a report released this afternoon and reported by Reuters, Johnson & Johnson said that its COVID-19 vaccine candidate showed an efficacy of 66% in a global trial. A section of the US trial showed an efficacy rate of 72%. 

These data are considered disappointing when compared with other vaccine candidates, as well as the commercially available vaccines from Pfizer and Moderna. 

All major sectors of the S&P 500 index opened lower as the disappointment of the data permeated throughout the market. 

Technical Levels to Watch

The breakdown of the channel is the key point of the daily chart of the S&P 500 index. The channel’s lower edge was violated by the candle of Wednesday. Yesterday’s pullback and rejection at this border, followed by today’s downside move has set the stage for a further drop on the S&P 500. This drop initially targets 3721.2, with a good chance of a further decline towards 3645.4. 3588.6 and 3528.9 are additional targets to the south. 

On the other hand, a bounce off 3721.2 allows for a retest of 3765.1, with a break of this area allowing bulls to attempt a run towards the all-time highs at 3870.9. The continuation of the uptrend will result from a break above 3870.9.

Don’t miss a beat! Follow us on Telegram and Twitter.

S&P 500 Index; Daily Chart

More content

Compare accounts

Related Posts:

More in Indices: