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Technical Update - S&P 500 & Nasdaq in correction phase. But how big a correction?

Equities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  S&P 500 / US500 cfd could test 4,300 before buyers regain control.
Nasdaq 100 /USNAS100 cfd looking at 14,300. Indicators suggesting higher Index levels after correction
VIX in a down trend hovering around support


S&P 500 is in a correction phase that is likely to take it down to the 0.382 retracement of the May-June uptrend at around 4,295 and the lower rising trendline. A close below could fuel a sell-off down to around 4,200.

A close above 4,383 is likely to resulting in S&P500 resuming uptrend with a move to  resistance at around 4,546 in the cards.
RSI is still showing positive sentiment with no divergence indicating higher Nasdaq levels are likely after a correction

sp500 d 27jun
Source all charts and data: Saxo Group
US500 cfd: 0.382 retracement at 4,295. Could dip to test support at around 4,266
us500 d 27jun

Nasdaq 100 has broken below its lower steep rising trendline and seems destined to drop to support at around 14,300A test of the lower rising trendline should not be ruled out.
RSI is still showing positive sentiment with no divergence indicating higher Nasdaq levels are likely after a correction

nasdaq100 d 27jun
USNAS100 cfd could drop to test strong support at around 14,250 before uptrend is likely to resume
usnas100 d 27jun

The VIX Volatility Index is hovering around the support at around 14.10 in a downtrend that could take the VIX index down to 12. (Weekly chart)

vix d 27jun

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