Market Extra: Why the stock-market selloff could get ugly if S&P 500 falls below 3,900

by | Sep 14, 2022 | Stock Market

The biggest one-day drop in more than two years left U.S. stock-market bulls staring at crucial support for the S&P 500 index around 3,900 — a convincing move below that level would signal the risk of significant pain ahead, chart watchers warned. Market risk “is elevated as long as the index sits below 3,900. Buyers need to throw everything they have at stocks right now to prevent further damage,” said technical analyst Andrew Adams in a Wednesday note for Saut Strategy.

The S&P 500
SPX,
-0.18%
was up 0.1% in afternoon activity Wednesday to trade near 3,937, as modest early gains faded. The large-cap benchmark dipped in earlier trade, hitting a session low of 3,918.78, according to FactSet, taking it below Tuesday’s intraday low at 3,921.28. The S&P 500 fell 4.3% on Tuesday to close at 3,932.69, its lowest finish since Sept. 6, after the August consumer-price index showed inflation failed to cool in line with expectations. The Dow Jones Industrial Average
DJIA,
-0.37%
dropped over 1,200 points for a 3.9% decline, while the Nasdaq Composite
COMP,
+0.11%
slumped 5.2% — the biggest one-day percentage drops for all three benchmarks since June 11, 2020.

Saut Strategy

The dev …

Article Attribution | Read More at Article Source

Share This