Yesterday at a glance: down on the day: the S&P closed at 3,934 after ranging between 3,922.68 and 3,957.57.
Initial Jobless Claims data from United States will be released today at 13:30 UTC with analysts expecting a decline to 230,000. Potentially significant price fluctuations in the S&P 500 are expected to follow.
United States Crude Oil Inventories released earlier showed a marked improvement to -5.19 million from the preceding data of -12.58 million, but fell short of the -3.31 million figure forecast by a consensus of market analysts.
Amid the market gloom, United States Cushing Crude Oil Inventories released yesterday at 15:30 UTC with a figure of -373,000, while the previous figure was -415,000. United States Unit Labor Costs (QoQ) (Q3) came out at 2.4, while a consensus of analysts was expecting 3.1.
S&P 500 could begin to recover as it approaches significant support, now 15.38 points away from 3,918.54. Dipping below could be an indication that further losses are ahead. The MACD is significantly below its signal line which suggests that the existing bearish sentiment is beginning to swing around toward a more bullish outlook. The S&P's lower Bollinger Band® is at 3,894.27, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Technical analysis indicates that the S&P 500 (currently on a downtrend) might reverse course and start pointing upward in the short term.
In the meantime, negative performances are also seen in other markets, ASX 200 draws back 0.75% yesterday and closed at 7,229.4. After ending yesterday's session at 2,382.81, KOSPI Composite Index lost 11.81 points and is trading around 2,371.
Other assets are showing positive performances as Hang Seng is trading around 19,450 after ending yesterday's session at 18,800 (up 3.38% today).
Looking ahead, ongoing depreciation may be prolonged as United States Initial Jobless Claims projected to come out at 230,000 — worse than previous data of 225,000; data will be released today at 13:30 UTC.
Furthermore, United States Producer Price Index is expected tomorrow at 13:30 UTC.
The S&P 500 hit a significant low of 3,577 around a month ago, but has since recovered 10.18%.