S&P 500 enters correction territory, ending Friday just shy of $4,100

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  • The S&P 500 is extending declines into a two-week stretch, down over 5% for the period.
  • S&P index down over 10% from the July peak at $4,600, enters correction territory.
  • US Equities mixed on Friday as recession fears, lopsided earnings reports drag on stocks.

The Standard & Poor's index marked in the second losing week in a row, entering correction territory after falling 10% from July's high near $4,600.

The S&P 500 index closed Friday down around 20 points, shedding half a percent close out at $4,117.37, with the Dow Jones Industrial Average sinking over 366 points to shed 1.12%, closing Friday at $32417.59.

The NASDAQ Composite index bucked the bearish trend for Friday, closing up 47.41 points to end the day up almost 0.4%, closing at $12,643 plus one penny.

Equities got pushed broadly lower as inflation continues to remain a sticky problem for the Federal Reserve (Fed), with the US Personal Consumption Expenditure (PCE) Index showed consumer price spending rise by its fastest month-on-month pace since May, with the annual PCE cooling slightly into September, bringing "higher for longer" interest rate concerns back to the forefront.

The Fed is slated for another rate call next Wednesday, and while money markets are pricing in an expected rate hold next week, odds of an additional rate hike at December are steadily rising as the US economy remains firm compared to global competitors and inflation remains stubbornly higher than expected.

S&P Technical Outlook

The S&P stopped just short of slipping back into $4,100 in Friday's mostly bearish trading, and the major equity index continues to backslide, entering correction territory from July's peaks, and the S&P has locked in two consecutive weeks of red on the charts.

Daily candlesticks have tumbled past the 200-day Simple Moving Average (SMA) as bearish momentum firms up on the chart paper, and the last swing high into $4,400 sees added technical resistance from the 50-day SMA, currently settling into $4,350.

S&P Hourly Chart

S&P Technical Levels

SP 500

Overview
Today last price 4117.25
Today Daily Change -16.69
Today Daily Change % -0.40
Today daily open 4133.94
 
Trends
Daily SMA20 4284.72
Daily SMA50 4367.85
Daily SMA100 4411.69
Daily SMA200 4247.95
 
Levels
Previous Daily High 4182.1
Previous Daily Low 4127.41
Previous Weekly High 4391.32
Previous Weekly Low 4222.22
Previous Monthly High 4538.24
Previous Monthly Low 4237.48
Daily Fibonacci 38.2% 4148.3
Daily Fibonacci 61.8% 4161.21
Daily Pivot Point S1 4113.53
Daily Pivot Point S2 4093.13
Daily Pivot Point S3 4058.84
Daily Pivot Point R1 4168.22
Daily Pivot Point R2 4202.51
Daily Pivot Point R3 4222.91

 

 

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