back
Details Cookies
International
Important margin product information

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.

Cookie policy

This website uses cookies to offer you a better browsing experience by enabling, optimising and analysing site operations, as well as to provide personalised ad content and allow you to connect to social media. By choosing “Accept all” you consent to the use of cookies and the related processing of personal data. Select “Manage consent” to manage your consent preferences. You can change your preferences or retract your consent at any time via the cookie policy page. Please view our cookie policy here and our privacy policy here

background image background image background image

Technical Update - S&P 500 testing key resistance. Nasdaq struggling to keep up. Dow Jones in strong uptrend

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

S&P 500 closed Friday just a few points below key resistance at 3,907. RSI closed also below its threshold at 60 i.e., still showing negative sentiment.
S&P is trading lower in early session Monday and the Index over the next couple of days closes below 3,800 bear trend is likely to resume. If RSI is failing to close above 60 and instead gets rejected it will confirm that scenario.

If S&P500 instead manages to climb higher and close above 3,907 the Index could get momentum towards the medium-term falling trendline (Black line) with strong resistance at around 4,119.

SP500 d 31OCT
Source all charts and data: Saxo Group

Nasdaq 100 has dropped back after testing key resistance and the 0.382 retracement around 11,660.
If the Nasdaq Index drops lower to close below 11,176 the bear trend has resumed for likely new lows.
RSI didn’t even test the 60 threshold and if breaking back below 40 and its lower rising trendline it will support the bearish picture.

Nasdaq100 d 31OCT

Dow Jones Industrial Av. Index has outperformed the other two the past couple of weeks experiencing a strong rally off lows.
Closing above 200 daily SMA Friday Dow Jones could test the resistance at around 33,292 and the medium-term falling trendline.

RSI is above 60 with no divergence supporting the short-term uptrend and the likelihood of higher levels.
Medium-term trend is still however, and Dow Jones needs to close above 34,282 to reverse that. If weekly RSI closes above 60 there is great likelihood that scenario will play out. RS is currently below 60 and showing negative sentiment.

 

 

DJI d 31oct
DJI w 31oct

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.