The US equity markets continued with a down trend also during the previous week. The S&P 500 officially entered into correction, after losing 10% from its peak in July this year. At the beginning of the week, the index was struggling around the level of 4.260, but it ended the week at level of 4.117. As analysts are noting, regardless of strong US GDP output for the Q3, the concern over the potential of the US economy to sustain this level in the coming quarters is holding.
The key momentum support level at 4.200 has been broken during the previous week. This has opened a path for the S&P 500 to potentially move further down to the next historical support line at 4.050, which might occur during the course of the week ahead. On the other hand, it should be considered the potential for the oversold side, in which sense, some short reversals might occur, but it will not be the significant one.
The key momentum support level at 4.200 has been broken during the previous week. This has opened a path for the S&P 500 to potentially move further down to the next historical support line at 4.050, which might occur during the course of the week ahead. On the other hand, it should be considered the potential for the oversold side, in which sense, some short reversals might occur, but it will not be the significant one.
