ASX 200, S&P 500 Index Forecasts: Healthy Correction Underway

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ASX 200, S&P 500 Index Forecasts: Healthy Correction Underway

Sector-wise, 8 out of 11 S & P 500 sectors closed in the red, with 61% of the index’s constituents ending lower on Thursday. Energy (+2.92%), financials (+0.16%) and information technology (+0.07%) were doing the heavy lifting, whereas industrials (-0.93%), materials (-0.71%) and utilities (-0.51%) were among the worst performers.

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S & P 500 Index Technical Analysis:

The S & P 500 index appears to be ranging higher within an ‘Ascending Channel’ as highlighted in the chart below. The uptrend was well supported by its 20-Day Simple Moving Average (SMA) line, although some short-term pullbacks were observed. Immediate support and resistance levels can be found at 3,660 (38.2% Fibonacci extension) and 3,705 (50% Fibonacci extension) respectively. The index may have entered another healthy correction amid an overall upward trajectory.

S & P 500 Index – Daily Chart

ASX 200 Index Technical Analysis:

The ASX 200 index entered a brief correction after hitting a 9-month high. The overall bullish trend remains intact though, as suggested by the ascending 20-Day Simple Moving Average (SMA) line. The index is testing a key support level of 6,630 – where its 38.2% Fibonacci extension and 20-Day SMA intercept. Holding above this level may pave the way for further upside potential towards 6,724 – the 50% Fibonacci extension.

ASX 200 Index – Daily Chart

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— Written by Margaret Yang, Strategist for

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