According to Bespoke Investment Group, U.S. stocks are up in 2023, but the S&P 500 has dropped to the bottom of its bullish trading channel this month. The S&P 500 ended 0.2% lower on Tuesday at 4,443.95 as traders await the outcome of the Federal Reserve’s two-day policy meeting.
Bespoke noted that the S&P 500 is currently at the bottom of its uptrend channel and below its 50-day moving average. A chart in the note tracked the index’s trading channel.
BESPOKE INVESTMENT GROUP NOTE DATED SEPT. 19, 2023
BofA Global Research noted on Tuesday that the S&P 500 has entered its historically weakest 10-day period of the year, which started on September 18. Despite falling 1.4% this month, the index has gained 15.7% for the year. The S&P 500 finished below its 50-day moving average of 4,484 and is on track for back-to-back monthly losses after a strong performance through July.
Bespoke highlighted that stocks in some sectors are either breaking down or failing at key resistance levels, particularly in consumer staples and healthcare. On the positive side, energy and financials, especially insurance stocks, are showing the most strength. Energy stocks in the S&P 500 have risen 3.4% in September, driven by higher oil prices.
Higher oil prices have fueled inflation, with the consumer-price index rising 0.6% in August for a year-over-year rate of 3.7%. Fed Chair Jerome Powell’s press conference following the central bank’s policy meeting will be closely watched for clues on interest rate strategies.
