S&P 500 PRICE FORECAST & TECHNICAL ANALYSIS – 22 FEBRUARY 2023
22 Feb 2023
S&P 500 fell 2% overnight
Wall Street tumbled sharply overnight on Wednesday, as all three major indexes ended lower, led by selloffs in technology, consumer discretionary, industrials, and financial stocks. The S&P 500 lost 2.01%. as sentiments soured on S&P Global’s PMI data. Business activity in the U.S. rebounded sharply, touching an eight-month high, which sent fears of further rate hikes soaring.
The S&P 500 slid Tuesday, as a slump in retailers and surging Treasury yields put the squeeze on the growth sectors of the market including tech amid growing fears that further Federal Reserve rate hikes will be needed to cool inflation.
The 10-year Treasury yield rallied to flirt with the 4% handle for the first time since Nov. 10 as investor expectations for a cut this year dwindle and fears grow that the Fed peak level of rates could be higher than expected.
The S&P Global Flash US PMI Composite Output Index registered 50.2, rising sharply from 46.8 in the previous month. A print above 50 is seen as a positive indicator, and February’s numbers clocked in as the highest in eight months. Service sector firms in America saw growth while manufacturing reported a slower decrease in output.
Some companies continued to highlight that because of rising interest rates and inflations, customers demonstrated significant hesitancy, however, demand continued to rise. The report further added that the rate of service sector input cost inflation remained high even though it eased to the second-weakest level since October 2020.
S&P 500 TECHNICAL ANALYSIS DAILY CHART:
S&P 500 is currently trading in the up channel.
S&P 500 is currently trading below 5&20 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting a downtrend.
S&P 500 immediate resistance is at 4039.09 & its immediate support level is 4002.34
HOW TO TRADE S&P 500 IN THIS WEEK
S&P 500 is trading in the up channel; currently, it is at an important support zone if it manages to hold on above the support level then, we can see further the upside.