The bleeding continues from Friday’s gash wound as equities are seeing red again today. S&P 500 futures were down earlier by around 0.4% but are accelerating losses now to over 0.8% on the day.

Meanwhile, European indices are also seeing the slight losses from earlier gather pace. The DAX is down 0.8% and CAC 40 down 0.7% currently.

In the bigger picture, all eyes will be on US indices later. In particular, the S&P 500 will be in focus as it looks set to crack under its 100-day moving average (red line) for only the second time since November 2023. Are we overdue a more significant correction in price action to start the new year?

This article was written by Justin Low at www.forexlive.com.