FxWirePro: Selloff in S&P500 not over yet

The U.S. benchmark stock index, S&P500 has been declining since it reached an all-time high of 2940 area (SPX500) in early October. Since then, the index has declined more than 9.5 percent and currently trading at 2657 (SPX500).

The index is up almost 0.7 percent in today’s trading. However, our calculations are suggesting that the selloff that has begun in October is not over. With the month coming to an end, we expect the selling pressure to continue in November.

Calculations are suggesting that the index (SPX500) would decline by another 12-15 percent and reach 2250 area, which would be the lowest level for the index since February 2017. Such a move would wipe out almost all the gain made under the Trump administration.