SP500 Index Declines for the Fifth Day

The SP500 futures are down for the fifth consecutive day and today, Wednesday, they continue with the same selling mood, with the index down 0.505 during the London session and trading at around 2,715 USD.

The price is now testing the first stronger support of previous lows at 2,713 USD and if this one is broken, the bearish momentum could be confirmed, targeting another support zone near 2,694 USD. Moreover, the key support zone is currently near 2,670 USD, where the long-term bullish trend line is located.

However, the index remains below the 200-day moving average, which supports the bearish case and therefore, there seems to be a downward outlook.

On the upside, the first notable resistance might stand at 2,732 USD and if not held, bulls could push the price back to the 200-day moving average near 2,765 USD.

November and December are usually positive months for US stocks, but it seems like this year could be an exception to the rule as indices look heavy, with further selling likely over the next few days.

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