S&P500 Index technical analysis: The yield curve inversion sends US equities into panic

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  • The S&P500 erases Tuesday’s gains as the yield curve inverts. 
  • The market could continue declining towards the 2,814.00 and 2,790.00 levels.
 
Trump attempts to ‘Twitter-up’ the stock market to no avail, blames Fed for inverted yield curve.
 

S&P500 daily chart

 

The S&P 500 Index broke below the 2,900.00 handle and the 50/100 day simple moving averages (DSMAs) as the yield curve inversion is seen as a recession signal by investors.
  

S&P500 4-hour chart

 
 
The market broke several levels of support and below its main SMAs. The bears are back in control and could drive the market lower towards 2,814.00 and 2,790.00 support in the medium term.

S&P500 30-minute chart

 
The market is under pressure below the main SMAs. The 2,850.00 level could act as resistance as well as the 2,870.00 level.

Additional key levels

 

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