Medium- and long-term movements of the SP500 index

The fundamental indicator

US stock futures rebounded on Friday after sharp losses in the previous session, as concerns about AI-related turmoil eased.

S&P 500 futures rose 0.6%, Nasdaq 100 futures advanced 0.8%, and Dow Jones futures gained nearly 180 points, after declines of more than 1% on Thursday.

Wall Street stocks fell for the third consecutive day on Thursday amid concerns about artificial intelligence, pushing the S&P 500 (SPX) into negative territory for the year, after survey data showed a sharp rise in layoffs announced by US companies in January to their highest level in 17 years, raising concerns about the resilience of the US economy.

The S&P 500 Software & Services Index (SPLRCIS) fell 4.6% on Thursday, having lost nearly $1 trillion in market value since January 28, in what traders and investors described as a software disaster.

On the technical side

S&P 500 rebounded from the downtrend levels on the four-hour chart, and we expect the index to return to declines again to target 6750 as the first target, then 6600, and finally 6150 points in the medium and long term.

Any break of the downtrend levels, we expect the next levels for selling to be a retest of the broken uptrend near the 6870/90 levels.

This scenario fails if the 7000 levels are broken again to the upside.