Friday at a glance: the S&P 500 dropped 43.39 points early on and stayed at 3,852.36.
Concerning technical analysis and more specifically, trend indicators, S&P 500 made an initial break below its 50 day Simple Moving Average at 3,861.66, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of 3,842 currently serving as support. If price action breaks below, the next Fib hurdle is 3,806.24. Asset volatility analysis shows that Bollinger Bands® shows an indication of recovery: the lower band is at 3,848.63, a low enough level to, generally, suggest that the S&P is trading below its fair value. Technical chart analysis shows the S&P 500 could begin to recover as it approaches significant support, now 29.15 points away from 3,823.21. Dipping below could be an indication that further losses are ahead.
With market volatility ebbing, the current technical outlook indicates the S&P 500 will remain range-bound for the immediate future.
In the meantime, negative performances are also seen in other markets, FTSE dips 1.27% Friday and closed at 7,426.17. CAC stumbles 1.08% Friday and closed at 6,522.77. Dow Jones slides down 0.85% Friday and closed at 33,200.
Furthermore, United States Building Permits (Nov) is scheduled for tomorrow at 13:30 UTC.
The S&P hit a significant low of 3,577 around 2 months ago, but has since recovered 8.91%.