US futures bounce back a little to start the week, for now at least

Though that has been the same old story last week before it all turned into a bloodbath at the end of the day. And one can argue that the latest bounce here is also one that may prove to be rather shallow and insignificant.

  • S&P 500 futures +0.7%
  • Nasdaq futures +0.9%
  • Dow futures +0.7%

The charts arguably say a lot more about prevailing sentiment among US stocks and they aren’t looking pretty.

SPX D1 24-01

The S&P 500 has fallen past both its key daily moving averages for the first time since May 2020 and as long as price keeps below its 200-day moving average (blue line), then sellers will stay in control.

The next key support will be the September to October lows near 4,300.

Meanwhile, the Nasdaq has fallen to its lowest since June last year upon a break of its own 200-day moving average (blue line):

Nasdaq D1 24-01

That leaves room to roam for sellers back towards the May low close to 13,000.

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