Following Tuesday’s decline in the S&P 500 index, Wednesday has ushered in an additional drop in the index’s value, along with other major US indices. All 11 major sector indices of the S&P 500 were trading lower as at market open. The Energy Index initially dropped 0.5%, but has picked up some steam as US crude oil inventories fell by more than expected. The Financial Index is also down, while the Consumer Discretionary index continues to feel the pinch from Tuesday’s appalling retail sales figures.
However, price action on the S&P 500 depicts low-volume trading, as investors await the release of the FOMC minutes at 1800 hours UTC.
The S&P 500 index is marginally lower on the day, registering a loss of 3.32 points (0.08%) as of writing.
Technical Levels to Watch
Recent price action on the S&P 500 is found within the ascending channel. A decline below this channel and the 4422.92 support opens the gateway towards 4393.03. Below this level, a further decline would bring 4368.58 and 4324.44 into the picture.
Conversely, a bounce on the channel’s lower edge targets 4475.23. The channel’s upper boundary serves as the only barrier between this price level and new highs at 4500 (psychological resistance) and 4561.95 (127.2% Fibonacci extension).