Asset Watch
Tuesday, October 24, 2023
The S&P 500 also ended last week below trendline support, as the index closed below the upward-sloping grey line. Yet, the 50-week MA stands near 4,185, and the level acted as a significant inflexion point during the August and December 2022 rally attempts. In other words, it was resistance back then and could provide support now.
Furthermore, seasonality remains on the bulls’ side, as late October and early November typically coincide with sharp upswings. So, stocks ‘performance could brighten if interest rates slow their rapid rise.
Is the S&P 500 ripe for a rebound, or will the 50-week MA be the next casualty en route to new weekly lows?