S&P 500 approaches the US election, as is often the way at major events, just above its key support at 3209/3199, which needs to hold post the election to avoid an important top. Meanwhile, the VIX maintains its base to mark a more concerning rise in volatility, per Credit Suisse.
Key quotes
“The sell-off in the S&P 500 as we approach the election has bought the market to within touching distance of its pivotal support at 3209/3199, which includes the key September low. With the market already showing some near-term signs of stabilization we think likely to now hold until results of the election start to emerge.”
“Key technically will be whether this 3209/3199 support remains intact post the election, as a conclusive break would see a significant top established, exposing the 200-day average, currently at 3129. Worryingly, weekly RSI momentum already looks to be holding a top.”
“Above 3305/10 is needed to ease the immediate downside bias for strength back to the price gap from last week, seen starting at 3342 and stretching up to 3390/94, also the 13- and 63-day averages, with sellers expected here. A close above 3394 stays needed to suggest a better low has been established.”
“The VIX maintains a base with resistance next at 44.44.”
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