S&P 500 is ‘losing key support’, should see 3775 soon, strategist warns
By Senad Karaahmetovic
U.S. equities are trading lower today as traders continue to focus on the meltdown in SVB Financial Group (NASDAQ:SIVB).
The bank was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation as receiver, according to a statement.
The S&P tested multi-week lows earlier today before receiving a boost from U.S. President Biden, who is optimistic about the next week’s CPI print.
Still, the S&P 500 trades about 0.6% lower as bears look determined to secure a close below 3900. BTIG’s Chief Technical Strategist Jonathan Krinsky warned today that the index is losing key support and could move lower in an accelerated fashion in the coming days.
“The 3925-3950 zone was the area with the most amount of volume over the last three years, and therefore losing that would be rather meaningful. We expect rallies will now be capped under 3950, and should see a move down towards the Dec. lows (3775) over the coming days and weeks,” Krinsky said in a note.