Submitted by City_Index t3_10pttp2 in wallstreetbets
Monday’s sell-off seemed to stem mostly from profit-taking rather than a specific catalyst driving a shift in sentiment. Traders were likely looking to reduce risk ahead of the Fed’s interest rate decision and Big Tech earnings this week.
The outcome of both will likely play a big role in determining whether or not this decline turns into a more sustained sell-off. However, the S&P500 currently looks like it could be in for another rejection from the key 4100 level. If disappointing earnings and a relatively hawkish Fed does trigger further selling, it will be interesting to see if SPX can hold support around its former downtrend resistance and 200-day MA. From a technical standpoint, this may at least signal that the index is actually building a sustainable recovery from the October lows.
Of course, all trading involves risk, but it will be worth keeping an eye on how this week’s events progress as volatility is likely to be elevated.
VisualMod t1_j6m7oqm wrote
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