• Wall Street leading indices are barely down as the week kicks in.
• Energy stocks keep in the green as crude oil continues its advance.

US stock indices are declining during the New York session amid thin liquidity conditions with the money markets (US Bond market) closed for the observation of Columbus Day in the US. The S&P 500 is down 0.10%, at 4,388.26, the Dow Jones Industrial Average slides 0.16% at 34,691.57, and the tech-heavy Nasdaq Composite slumps 0.04%, sitting at 14,814.58, at press time.

Among the 11 sectors, Energy is rising 0.17% on the back of higher crude oil prices, with the Western Texas Intermediate (WTI) advancing almost 2%, trading at $80.65. On the other hand, Financials are down 0.11%, despite higher US bond yields and the Federal Reserve QE reduction prospects.

S&P 500 Price Forecast: Technical outlook

Daily chart

The S&P 500 retreated from yearly highs around 4,549, down the July 8 swing lows around  4,270. However, in the last week, the 100-day moving average (DMA) reclaimed around 4,370, boosts the prospects of “buying the dip.”

In the S&P 500, a break above the 50-day moving average at 4,442 could open the door for a re-test of the 2021 year highs. In case of that outcome, the following resistance level would be 4,482, and then 4,550 2021 highs.

On the flip side, failure at the 50-DMA coupled with a break below the 100-DMA could accelerate the fall towards the 200-DMA at 4,172 and beyond.

The Relative Strength Index (RSI) is at 48, indicating that downward pressure remains, opening the door of another leg down, perhaps towards the 200-DMA.

KEY ADDITIONAL LEVELS TO WATCH