It’s been a terrible week for equities as the central bank windfall sent jitters across all markets. A quick reassessment towards a 75 basis point rate hike for the Fed kicked things off before we got a surprise policy change from the SNB.
The only relief is that the BOJ has decided to play its cards straight, otherwise all hell would break loose before the weekend. Here’s a look at US futures right now:
- S&P 500 futures +0.8%
- Nasdaq Futures +1.1%
- Dow futures +0.6%
It’s not much when you put yesterday’s selloff into context, but it’s a bit of a respite after an extremely difficult week. The weekly charts are the ones that tell the story of the US indices right now:
The S&P 500 breaks below the support at the 38.2 Fib retracement level and heads towards a look at the 200-week moving average (blue line) at 3,502. This sits near the 50.0 Fib retracement level at 3,505 and will be a key support region to watch for any potential reprieve as the bears sharpen their claws.
Meanwhile, the Nasdaq is threatening a break below its own 200-week moving average (blue line) at 10,795 and that will keep sellers poised to extend the downward momentum to the next leg up. The 61.8 Fib retracement level at 10,291 may offer some light support before the 10,000 mark comes into play.