SP500: Shock down

Fundamental analysis:

The S&P 500 index closed down 46.85 points, or 1.22%, at 3782.40 points on December 28 (Wednesday); the Organization for Economic Cooperation and Development (OECD) and the International Monetary Fund (IMF) predict that inflation (currently in the 40-year highs) and central banks reining in it with higher interest rates would cause global growth to slow to 2.2% in 2023, down from a previous estimate of 2.8%. A recent decline in composite leading indicators across most major OECD economies supports this outlook.

S&P SP500 - 4-hour K-line chart shows:

Brief technical analysis:

Looking at the 4-hour chart: the short-term momentum maintains a slow downtrend, the short-term decline may continue, the market bearish sentiment emerges, the MACD indicator is hovering weakly below the 0 axis, and the RSI indicator is below the 50 balance line.

Long-short turning point: 3823

Suppression: 3845, 3868

Support: 3788, 3770

Trading strategy: bearish below 3823, target 3788, 3770

Alternative strategy: call above 3823, target 3845, 3868