Macro: It’s all about elections and keeping status quo
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
Technical Analyst, Saxo Bank
Summary: A technical top and reversal pattern has formed in S&P 500 and Nasdaq 100
During Tuesday's trading session S&P500 formed a Gravestone Doji. (Market opened and closed in almost same price at the low end of the candle with a tall upper shadow i.e. Buyers tried pushing market higher from the open, only for sellers to take control)
It was followed by a bearish day yesterday with the Index drawing a Bearish engulfing candle engulfing the body of both Tuesday and Monday trading session under heavy volume..
This formation indicates we are likely to see a correction. RSI is not showing any divergence however, which signals that we could see higher levels later after a likely correction.
A correction that could take the Index down to around 4.450. The correction scenario will be demolished and reversed if S&P500 trades above the high of the Gravestone Doji at 4.598.55.
Nasdaq 100 waited another day before it also formed a Gravestone Doji. Today’s trading session can be very interesting. A correction down to around 15.140 is not unlikely. Some support at around 15.330