US 500 has fallen 20% since the start of the year and if weak earnings reports continue, further falls could occur.

The US 500 has fallen 20% since January 2022, an increase in weak earnings reports could cause further declines for the index before the end of the year. From a technical perspective, the index is currently trading at 3,710. Towards the downside, a major support base sits at 3,666 and a break below this support base could see the index fall again towards the lows of the year (ranging between 3,490-3600). However, towards the upside first resistance sits at 3,729 followed by a major resistance level at 3,765 (upper Bollinger Band). A break above the major resistance may potentially see the index begin to make some gradual recoveries. However, investors should keep in mind the various possible outcomes with the ongoing economic crisis weighing over the stocks. Looking at the technical indicators, RSI suggests a positive position as it reads 50 but MACD is negative.