There seems to be no reprieve for the S&P 500 futures, as they are getting hammered again as coronavirus infections top 200,000. Governments across the world continue to scramble for solutions and are implementing severe lockdowns which include cancellation of tourist visas and restrictions to movement.
As at the time of writing, the S&P 500 was down 4% as investors continue to search for any fundamental reasons to assume long positions, even as fears of a massive global recession continue to spook markets. Markets await the Senate vote on the COVID-19 bill which was passed by the House, as well as new measures from the Fed to address liquidity.
Technical Outlook for S&P 500
All sectors of the S&P 500 are down today, with the energy and industrials sectors taking the hardest hit as crude oil prices continue to tumble dangerously towards $20. Airlines are desperately seeking financial support in the form of bailouts as countries all over the world seal their borders to international flights.
The S&P 500 is now testing the resistance formed by the low if 19 June 2017 at 2401.9. A breakdown of this level targets the 24 Dec 2018 low of 2320.5, with 2273.4 lurking underneath.
On the flip side, any inability of the S&P 500 to break the current support may bring some price reprieve, which may retest the broken support levels that now act as a resistance at 2479.7 and 2550.7. Sentiment continues to remain bearish, but there is always the possibility of price pulling back up before resuming the downtrend.
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