Tesla & USD Going To Drag SPX. Fell Below MA200 Tonight?
- Can U.S. stocks hold the 200-day moving average?
- Can the bulls regain dominance?
- You choose to stay long or go short?
$S&P 500(.SPX)$ trading at a critically important level here. Right below the 50 Day Moving Average(MA50 Redline) but right above the 200 Day Moving Average(MA200 whiteline).
Recently, the performance of the $S&P 500(.SPX)$ has been relatively weak. It has recorded a decline for three consecutive weeks, and last week it fell by 2.7%, the worst weekly performance since 2023.
Will the 200 Day hold as support?
Firstly, there are 3 Key facts affect Thursday’s market trend:
1) Musk's "Mater Plan 3" lacks details of the market's expected integrated die-casting technology and next-generation electric vehicles, $Tesla Motors(TSLA)$ 's stock price falls more than 5%,
2) $USD Index(USDindex.FOREX)$ rise 0.41% to $104.83, The trend of the dollar and the trend of the index are still negatively correlated.
3)The yield on the 10-year U.S. bond once broke through 4% to 4.006% for the first time since last November. Short-term rates surged even higher.
Secondly ,In the context of an uncertain macro outlook, investors have also begun to pay more attention to technical graphics.
The $S&P 500(.SPX)$ is currently only about 1% away from its 200-day moving average. If this key support level is broken, it may trigger a new round of selling.
- JPMorgan's trading desk warned that trend-following quantitative traders may have to sell as much as $50 billion in stocks if the $S&P 500(.SPX)$ falls below a key technical support point, the 200-day moving average.
- According to the team led by Marko Kolanovic, history shows that the $S&P 500(.SPX)$ is 2.5 times overvalued at current levels of real interest rates.
- Morgan Stanley big short Michael Wilson, also warned that stocks were under pressure in March from weak earnings and elevated valuations.
Separately, traders added nearly $3 billion to their short position in $S&P 500(.SPX)$ futures last week, while pulling a net $5.1 billion from exchange-traded funds (ETFs), according to statistics.
Amid the pessimism, HSBC Bank Plc strategist Max Kettner believes that with strong economic growth and expectations of rising interest rates already priced in, a relief rebound in U.S. stocks is more likely.
Vote Please,
What your attitude toward current trend?
Can U.S. stocks hold the 200-day moving average?
Can the bulls regain dominance?
Will you choose to stay long or go short?
$Nasdaq100 Bear 3X ETF(SQQQ)$ $Dow30 Bear 3X ETF(SDOW)$ $S&P 500 Bear 3X ETF(SPXU)$ $S&P 500 Bear 2X ETF(SDS)$
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- JoanneSamson·2023-03-02TOPGood article, easy to read. The bulls are not strong!12Report
- JuliusGoldsmith·2023-03-02My attitude, won't be a big decline now, should trade the ones with good news🔥17Report
- CynthiaVogt·2023-03-02based on the complex mkt conditions now, I think it would be better to trade Options17Report
- Trevelyan·2023-03-02Likely it can be held tonight. Waiting for tomorrow's report16Report
- Gloria112·2023-03-02Sooner or later, this support will be broken eventually.14Report
- WebbBart·2023-03-02It dragged the market so much...Which was totally out of expectation.6Report
- Frosty4ever·2023-03-06Elon's master plan had lot of gold nuggets. should even party of the plan to fruit the future is Tesla's.LikeReport
- intheloop·2023-03-04hard to vote ..sentiments have changed1Report
- Tradeforliving·2023-03-03I think its going to break support1Report
- ADAMSM1998·2023-03-07Great ariticle, would you like to share it?LikeReport
- JaydenSee·2023-03-07OkLikeReport
- lewisleeks·2023-03-07LikeLikeReport
- yiyoyoyi·2023-03-07k1Report
- KY56·2023-03-07Nice.👍LikeReport
- reeve·2023-03-05WowLikeReport
- AuntieAaA·2023-03-05okayLikeReport
- Boein3G·2023-03-04upLikeReport
- greedycat·2023-03-04LikeLikeReport
- Kellytan·2023-03-04ok1Report
- ZuZhou·2023-03-04H1Report