Hot Features
Premium
Level up your trading with our powerful tools and real-time insights all in one place.
The S&P 500 closed in negative territory on Wednesday after a technical glitch on the New York Stock Exchange caused trading to be halted for three and a half hours. Trading eventually resumed in the final hour, by which time all three US indices were firmly in the red. The S&P 500 ended up closing lower by -1.67% on the day.
In what looks to be a coincidence, the suspension on the NYSE came only a few hours after thousands of airline passengers were suspended from flying due to a separate technical fault. In an attempt to allay fears of a possible cyber attack, officials from the White House, SEC, and FBI all confirmed that there was no need for concern.
Volatility
Stock market volatility began overnight as Chinese and European stocks continued to slump. The Shanghai Composite Index dropped 5.9%, hitting 3.507.19 and is now down around 30% from the highs. There were further attempts by the PBOC to stimulate the market but over 1330 Chinese companies had to halt trading.
Looking at the key sectors in America, all 10 S&P 500 segments finished in the red, with Basic Materials, Energy and Telecommunications leading losses. Hasbro Inc. led gains and was the top performer on the index gaining 1.17%. the worst performer was Delphi Automotive which dropped 6.91% to the close.
Technicals & Outlook
The S&P 500 traded above its pivot overnight but moved into negative territory as the session wore on. The index ended trading under the first support and closed just below this level.
Looking ahead, we are constructive over the next few days and see a potential move up in the S&P 500 to 2,100. Over the next few weeks, we are more negative and feel that the market could head down to 2,040. This is based on the fact 5 out of the 6 indicators we track indicate a bearish bias.
Thierry Laduguie is Trading Strategist at www.bettertrader.co.uk
