SPX EMA50 signals bearish trend amid dynamic landscape

THE S&P500 Index (SPX), which suffered two consecutive months of losses, is down 9.6 per cent year-to-date (YTD), closing at US$4,306.26 on Mar 1, 2022. It fell 5.25 per cent for the month of January and dropped another 3.14 per cent in February.

The index briefly entered into correction territory as well when Russia started its war on Ukraine on Feb 24. The war sent the index falling to a low of US$4,114.65, declining 13.6 per cent YTD and into a correction territory before bouncing up 4.2 per cent to close at US$4,288.70. Correction is when the index falls by more than 10 per cent.

However, investors of the Nasdaq 100 index (NDX) would have suffered greater losses when the index declined 19.94 per cent YTD on Feb 24. The fall placed the NDX close to bear territory, which happens when prices fall as least 20 per cent. As at March 1, 2022, the NDX which is down 14 per cent YTD, is still within correction territory.