Biden’s decision to withdraw from the US presidential race has added uncertainty to already nervous equity markets, states Ian Murphy of MurphyTrading.com.
Meanwhile, earnings are flooding in with approx. 600 firms are due to report this week with several big tech names among them. It’s also a relatively light week on the economic front.
The S&P 500 declined for a third successive day on Friday, and on this occasion, the top 500 firms were accompanied downwards by the entire stock market in a broad-based selloff. Note how the composite indicator has dropped below zero again (arrow) as profits are booked across the board. The S&P 500 is now within touching distance of the -1ATR line on this daily chart where some level of support should come into play as happened previously in this bullish trend (underlined). Watch that level this week!
Learn more about Ian Murphy at MurphyTrading.com.
