S&P 500 PRICE FORECAST: THE STOCK MARKET RETREATS FROM RECORD HIGHS. Stocks are reversing sharply from all-time highs, with the S&P 500 index down more than 1%. Around the 4,300-price level, the S&P 500 Index is striving to find confluent support. Fibonacci retracements, the 14 June high, the rising trendline, and the MACD crossover are all things to keep an eye on. At the New York opening bell on Thursday, the S&P 500 took a big hit. The VIX ‘fear-gauge’ surged higher, sending stocks plunging across the board. The major market indices are all trading in the red, down approximately 1% for the day. The move coincides with a prolonged drop in bond yields, with the ten-year Treasury falling over 15 basis points to 1.3 percent since Monday. As a result, it appears that equity investors are now catching on to the bond market’s fears about slower economic growth. The S&P 500 Index, on the other hand, has been chopping around the psychologically critical 4,300-price level since Wall Street went live. The 23.6 percent Fibonacci retracement level of the S&P 500’s trading range from 12 May to 07 July underpins this area of confluent support. SPX INDEX PRICE CHART: 4-HOUR TIME FRAME (30 APRIL TO 08 JULY 2021) TradingView was used to construct this chart by @RichDvorakFX. Maintaining altitude could encourage bulls in the S&P 500 to close the gap below from the open this morning. Traders may try to defend support provided by the 14 June high and 4,255-price level if selling pressure resumes and the 4,300-handle is crossed. As shown on the 4-hour chart above, sustained downward pressure could result in a bearish MACD crossover. This may draw attention to the ascending trendline and 50-day simple moving average as potential technical hurdles to keep the S&P 500 price movement afloat. — Rich Dvorak, a DailyFX.com analyst, wrote this article. For real-time market updates, follow @RichDvorakFX on Twitter.
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