Amid Monday’s sell-off, the S&P 500 fellow below 2,800, which could signal the index has hit a key resistance level. The markets were set adrift in a sea of red on Monday as investors fears that a trade deal was already priced into the rise in U.S. equities year-to-date sparked a profit-taking bonanza.
The S&P 500 opened the session at 2814.37, but closed the session at 2,792.81–down 0.77 percent on the day.
“The rally from the 12/26/18 low is among the strongest starts to the year since 1987. The past two months’ straight-line move, however, has seen bearish sentiment fall to its lowest since January 2018, just as the S&P 500 finds resistance at 2,813,” Julian Emanuel, chief equity and derivative strategist at BTIG, wrote in a note. “Monday’s reaction to this overhead level suggests that stocks will likely spend time ‘Reading Between the Lines’ of resistance (2,813) and support (2,750 and 2,600) before heading to BTIG’s year-end price target of 3,000.
In the following video, CNBC’s “Closing Bell” team talks about what is moving markets with Omar Aguilar, chief investment officer of equities and multi-asset strategies at Charles Schwab, and Rick Santelli at the CME in Chicago.
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