State Street Stock Plunges 5.31% As Technicals Signal Strong Bearish Momentum

State Street (STT) declined 5.31% in the most recent session to close at $111, forming a decisive bearish candlestick that sets the context for our technical evaluation. The following analysis integrates multiple technical indicators across the required framework.
Candlestick Theory
The sharp decline on October 10 formed a long-bodied bearish candle closing near its low ($111 vs. intraday low of $110.87), indicating strong selling pressure. This follows a shooting star pattern on October 8 (high: $118.24, close: $116.69) showing rejection at higher levels. Key support now emerges at $110.50 (May-June 2025 consolidation zone), with resistance between $116.70-118.25, a zone validated by multiple prior highs and the October swing peak.
Moving Average Theory
The current price ($111) has crossed below the approximated 50-day moving average ($114.50), indicating short-term bearish momentum. It is currently testing the 100-day MA near $110.80, while remaining above the rising 200-day MA ($103.50). The 50/100-day death cross in formation suggests deteriorating sentiment. Sustained trade below the 100-day MA may accelerate selling toward the 200-day support.
MACD & KDJ Indicators
MACD histogram readings turned negative in early October, with the signal line crossing below zero on October 10 – confirming bearish momentum. KDJ shows oversold conditions (K-line: 18, D-line: 24), though this follows a steep decline where oversold signals can be premature. The synchronous bearish alignment of MACD and KDJ supports continuation pressure unless bullish divergences emerge.
Bollinger Bands
The bands contracted significantly throughout September (20-day bandwidth under 3%), preceding the October volatility expansion. Price now pierces the lower Bollinger Band ($112.80) with force, typically indicating an oversold extremity. However, consecutive closes below the lower band after an established downtrend may signal continuation rather than reversal, with the next bandwidth support near $109.50.
Volume-Price Relationship
The sell-off on October 10 occurred at 2.37 million shares – 57% above the 30-day average volume – confirming bearish conviction. Notably, this volume surge exceeded volumes during the preceding up days, indicating distribution. Declines have generally occurred on rising volume since early October, supporting sustainability of the downtrend absent a volume-backed reversal candle.
Relative Strength Index (RSI)
Daily RSI(14) currently reads 39 – neutral territory but trending downward from overbought levels >70 in mid-September. While not yet signaling oversold (sub-30), its descending structure aligns with bearish momentum. RSI divergence hasn’t materialized; price and RSI have declined in tandem since the September peak. A reversal requires RSI to reclaim 45-50 as a minimum confirmation threshold.
Fibonacci Retracement
Applying Fib levels to the upswing from the April 2025 low ($75.50) to the October 2025 high ($118.24): The 23.6% retracement aligns with key support at $108.15. Current price action is testing this level with the 38.2% level ($101.90) as the next downside target should $108 fail. Confluence exists near $110.50-$108.15 (horizontal support + 23.6% Fib), making this zone critical for bull defense.
Concluding Synthesis
Confluence of signals strengthens bearish bias: The breakdown below key moving averages, volume-confirmed price decline, MACD/KDJ momentum deterioration, and approach to critical Fibonacci support create a high-probability continuation setup. Divergences are absent, though Bollinger Band penetration and KDJ oversold readings warn of potential near-term consolidation. A decisive close below $108.15 could trigger accelerated selling toward $101.90, while recovery requires clearance of $116.70 to invalidate the bear structure. Traders should monitor the $108-111 support band as a key inflection area, with volume and RSI reversal signals providing essential confirmation for directional shifts. Risk-reward favors downside continuation absent technical reversal evidence.