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S&P financial index is down sharply
The Silicon Valley Bank issues are spilling over into other financials. The S&P financial index is currently down -2.15% at 544.07. The low-price rate 540.13.
Technically, at the low the price, the index tested the 61.8% retracement of the move up from the October 14 low to the February 7 high. That retracement level comes in at 539.48. Dip buyers put a toe in the water against that level.
However the overall technical picture has disintegrated this week with the bears taking firm control.
- On Wednesday, the price fell below its 100 day moving average near 580.77.
- Yesterday the price tumbled below its 200 day moving average at 563.78 and tested the 50% midpoint at 554.21.
Today’s move adds to the negative tactical bias.
It would now take a move back above the 50% retracement 554.21 to give the buyers some hope and confidence. Getting back above the 200 day moving average of 563.68 would add to that confidence.
Until then however, the sellers remain more control.
PS, the financial index closed the year at 569.73 in 2022. At the lows today the price was down -5.20% from the year end level..