S&P500 Market Recap - What Moved the Equity Market

== MARKET RECAP ==

• The S&P 500 fell 1.6%, the Nasdaq was down 1.1%. and the Dow Jones Industrial Average fell 2.1%, or 726 points, though was down 953 points at the lows of the day.
  
  
• Inflation concerns with tapering speculation build up
  
  
• Tensions between the US and China worsened
  
  
• Delta coronavirus strain causing uncertainty along with Covid Resurgence. New coronavirus cases climbed in all 50 states on Sunday for the fourth day in a row on a rolling seven-day average, a rise not seen since the spring 2020 surge.
  
  
• Selling pressure from cyclical stocks including financials and energy.
  
  
• The VIX reached a two-month high topping 25. VIX managed to close at 22.49 for the day.
  
  

== TECHNICAL OUTLOOK ==
The S&P500 opened lower with a strong bearish gap to the downside. The top level of this gap is now resistance. Price-action's selloff was supported by the 50 SMA along with the ascending support. Should this ascending support level breach including the support buffer (highlighted in blue) further declines should be expected. If on the other hand this selloff is short lived like what we saw back in early May, price action will need to break and hold above the gap resistance before instilling any bullish confidence that this selloff was just a Monday panic reaction to the develops over the weekend.

== SNAPSHOT OF THE VIX ==