Equities stay under pressure ahead of the Christmas weekend | Forexlive
It’s still all about the technicals when watching stocks at the moment, or at least that continues to be my take on the whole situation. Year-end is approaching and that may see reduced flows but if there’s ever a way to try and make sense of things, it has to be on the charts.
Before a late bounce yesterday, the S&P 500 threatened to break below the 50.0 Fib retracement level of the swing higher since October, seen at 3,796. The index still closed lower by 1.4% but staved off a significant drop below the key support level and that continues to be the line in the sand at the moment.
After having met technical resistance from the key trendline resistance (white line) this year and then a double-top pattern near 4,100, the measured target on the way down is around 3,760 before approaching the November low at 3,698.
I would argue this remains the key chart to watch for stocks and overall risk sentiment as we head into the turn of the year and it could very well set up the mood for early 2023, if broader markets would be looking for something to work with.