S&P 500 Tanks to Nearly Two-Month Low

By Timothy Sykes

Last updated on February 2, 2021
S&P 500 Tanks to Nearly Two-Month Low Thumbnail

The fourth-quarter market is shifting. The S&P 500 rebounded from its late September lows to highs on October 12 …  but is now plunging.

What’s driving the change? Companies reporting September results and the strain of staggering new COVID-19 cases and hospitalizations across the U.S.

Collapsing stimulus negotiations and the upcoming election aren’t exactly helping either.

Last week, the S&P 500 bounced off its 50-day moving average around 340. It’s now fallen below its 50-day moving average within the last few days.

That’s all building more uncertainty in the markets.

On Tuesday, the S&P 500 attempted to cross back over the 50-day moving average and failed. So now that average has become resistance at 340.

As of this writing, the S&P is down another 3.21% after gapping down from Tuesday’s low. It will need a strong push to break resistance.

There’s still another trading day left before large-cap companies release earnings reports. If reports from Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Facebook (NASDAQ: FB) are strong, that could push the S&P 500 up again.

If not, the SPY (S&P 500) may continue to drop. This could swing the S&P 500 into correction territory as the markets are already oversold.

S&P chart october 28
SPDR S&P 500 ETF Trust chart, October 28, 2020 — courtesy of StocksToTrade.com

Two Wall Street Wizards Spoon-Feed You THIS…

Imagine getting Wall Street rumors and news alerts every trading day … before the rest of the crowd hear about it.

Here’s the secret traders use to find stocks that are about to EXPLODE…

  • NOT a generic “newsroom” or chat hangout…
  • NOT something you’ll see on Yahoo Finance or Google News first…
  • NOT something you want everyone else to find out about…

Try it now for 14 days (for only $17)

Posts contain affiliate links. Timothysykes.com may get compensated for affiliate posts and purchases through links.

Share

How much has this post helped you?

star star star star star
Comments (1)
Author imageTimothy Sykes
Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.

Leave a Reply