S&P 500, Nasdaq 100 Latest as Ukraine/Russia Crisis Continues to Dominate Risk Assets
- Geopolitical risk remains the top driver of risk sentiment.
- US indices in positive territory in the European session.
The situation in Eastern Europe remains highly volatile with nearly 150,000 Russian troops stationed on the Ukraine border while a war of words continues to play out in the media. Tensions between Russia, Ukraine, and NATO remain heightened and against this backdrop risk assets are unlikely to move higher and will continue to be pressured to the downside.
The S&P 500 closed 2.1% lower Thursday, reversing a mid-week rally, with losses seen across the board. The indices is currently 0.50% higher in pre-US trade but the move lacks conviction with the 20-day simple moving average (red line) acting as resistance again after providing support earlier this month. A break below Monday’s 4,359 low opens the way for a re-test of 4,271, a horizontal line of support that held firm and provoked a rebound in early October and late January this year.
S&P 500 Daily Price Chart – February 18, 2022
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The Nasdaq 100 closed nearly 3% lower on Thursday as a combination of political risk and the negative impact of higher interest rates pushed a wide range of growth stocks sharply lower. The Nasdaq is 0.7% higher in pre-US trade but the indices remains heavy and likely to make further lows. While the S&P 500 remains above its early October low, the Nasdaq opened below this level today, leaving this as short-term resistance. The indices is below all three simple moving averages with a cluster of lows made in late January between 13,720 and 13,850 the next zone of support.
Nasdaq 100 Daily Price Chart – February 18, 2022
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