Head & Shoulders Pattern: S&P 500 Breaks Key Support Level

Head & Shoulders Pattern: S&P 500 Breaks Key Support Level

The S&P 500 (SPX) broke the 4, 300 support level that had been in place since July 2021 and tested it a few times after WTI crude oil futures spiked over the weekend—trading as high as $130 per barrel—as an increasing number of companies are choosing not to buy Russian oil. However, oil prices retreated to $120. 10, which was still 3. 8% higher than the closing price on Friday. Rising oil prices helped the energy sector to be one of two sectors in the green on Monday. Investors appeared to favor the defensive nature of utilities overall because the Utilities Select Sector Index rose 1. 31%. Treasuries also benefited from investors searching for safe havens because the 10-year Treasury yield (TNX) fell 1. 57%. A third safe haven appeared to be gold. Gold futures rallied 1. 81%, moving back above $2, 000 and returning to August 2020 highs. Fear and uncertainty continue to rise, causing the Cboe Market Volatility Index (VIX) to rise more than 11%. Fear is high enough that initial public offerings (IPOs) are disappearing. January had a record number of cancellations at 22. Currently, there are no IPOs listed on the Nasdaq IPO Calendar for any