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The S&P 500 (SPX) has reached major support at a 100-week-moving average right around the 5100 level. The next support is, as the chart below shows, the 200wma support around the 4600 level.
This is
S&P 500: Near-Term Bounce Going Into Earnings Season
Summary
- The S&P 500 could bounce over the near term to 5500 if we are past peak policy uncertainty.
- However, the next trigger to the downside will be a significant revision in earnings, which could push the S&P 500 down to 3000.
- Thus, corporate guidance during the upcoming earnings season will be the key.
Commodity Trading Adviser (CTA), member of National Futures Association. Professor of Finance, research on Global-macro issues. Editor-in-Chief, Journal of Corporate Accounting and Finance.
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