S&P 500 gives up 2.5% as the index enters the correction territory. The S&P 500 is 11.45% below the all-time highs that hit just six trading sessions ago, as the coronavirus crisis push all major indices in the correction territory. Investors worried the coronavirus might be spread now in the USA while the economic impact already felt as many companies proceed with revenue warnings for the first quarter. Now there are 82,549 confirmed cases and 2,810 deaths around the globe. The coronavirus spread rises worries about disruptions to supply chains and economies worldwide.
The S&P 500 breached also today the critical 200-day moving average for the first time since May 2019 and many analysts now believe that the long term bull market might be over. S&P 500 has turned negative for 2020 with over 8% losses
Earlier today, the U.S. GDP came in at 2.1% in line with expectations for the fourth quarter. The Durable Goods Orders came in at -0.2% topping the expectations of -1.5% in January. The Initial Jobless Claims came in at 219K, above the expectations of 212K in February 21.
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S&P 500 Technical Levels To Watch
S&P 500 trades 1.89% lower at 3,056 in the fastest six days drop into correction territory since the 2008 financial crisis. The index has cancelled the bullish momentum as it breached below the ascending trendline that began back in January 2019. Today’s session is very critical as a close below the 200-day moving average might be the begging of another leg lower.
On the downside, the S&P 500 initial support will be met at 3,007 today’s low. Next critical support stands at 2,980 the low from October 23rd 2019. In case of a further correction in S&P 500 the next support area is at 2,951 the low from October 14th , 2019.
On the upside, immediate resistance for the S&P 500 will be met at 3,118 the daily high. More offers might emerge at 3,180 the 100-day moving average. In case of a break higher the next supply zone for the index stands at 3,260 the high from February 25th.
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