S&P 500 (SPX) Heads Down For the 2nd Day In A Row, Breaks Below 20 Day Average; Price Base in Formation Over Past 14 Days

S&P 500 Daily Price Recap

S&P 500 is down 1.75% ($50.12) since yesterday, marking the 2nd day in a row a decline has happened. Relative to other instruments in the 8 major global equity indices asset class, S&P 500 ranked 5th since yesterday in terms of percentage price change. Here is a daily price chart of S&P 500.

S&P 500 Technical Analysis

Moving average crossovers are always interesting, so let’s start there: S&P 500 crossed below its 20 day moving average yesterday. Volatility for S&P 500 has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Also of note is that on a 14 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For another vantage point, consider that S&P 500’s price has gone up 16 of the previous 30 trading days.

Overheard on Twitter

Behold! Here are the top tweets related to S&P 500:

  • From RealMikeLarson:

    In hindsight, financials were definitely the “tell” here. Have been trading heavy for ages … and went red first this morning (Not like most investors these days believe there are more than 5 mega-cap #tech stocks in the S&P 500 though) $XLF $KRE $SPX

  • From OptionPit:

    Many of the index’s are no longer really index’s. The $QQQ is now about 48% $MSFT $AAPL $GOOG $AMZN $FB and the S&P 500 is now 21% of the same stocks. The $SPX in particular is alarming considering the world wide exposure.

  • From AJ_LaBella:

    What kind of animal is looking at the S&P 500 or any of FAANG and thinking to themselves “Oh yea this looks good”? $ES_F $SPY $SPX $spxs $spxl $fb $aapl $amzn $nflx $goog $tsla $tslaq

As for a news story related to S&P 500 getting some buzz:

Search Results for “S&P 500” – ISABELNET

Image: Goldman Sachs Global Investment Research S&P 500 Index and Total Return to Gold Ratio According to BofA, the gold to equity ratio is elevated given the earnings uncertainty, but it is far from historical highs….Image: Goldman Sachs Global Investment Research Gold’s Last Bull Market and Gold/S&P 500 Correlation During the GFC, the correlation between gold and the S&P 500 was positive.