Technical Update - SP500 and Nasdaq taking out key supports. Sell in May is here early, will it continue? Technical Update - SP500 and Nasdaq taking out key supports. Sell in May is here early, will it continue? Technical Update - SP500 and Nasdaq taking out key supports. Sell in May is here early, will it continue?

Technical Update - SP500 and Nasdaq taking out key supports. Sell in May is here early, will it continue?

Equities 5 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

"Sell in May" seems to have arrived early this year.

The S&P 500/US500 and Nasdaq 100/USNAS have been hit with heavy selling over the past week, taking out several support levels. Indicators are pointing to lower levels going into next week, but a minor correction could come soon. However, there is a long way to go before a bullish trend returns.

S&P 500 closed Thursday just above the support at around 5,000. However, overnight the Future/US500 CFD has been trading lower, dipping down to the 100 daily Moving Average and the lower part of the Cloud — see the US500 chart — but has recovered somewhat, trading just below 5,000.

The daily RSI is showing negative sentiment, suggesting the S&P 500/US500 are likely to trade lower in the coming days and weeks.

A daily close for the S&P 500 (cash index) below 4,953 could add to selling pressure down to around 4,845 support, close to the 0.382 retracement of the entire uptrend since October 2023.

For the S&P 500 to demolish this bearish trend, a close above 5,416 is the minimum requirement. To reverse it, a close above 5,212 is required to establish a bullish trend

sp500 d 1904
Source all charts and data: Saxo Group
US500 cfd levels: Support at 4,919 and 4,841-4,793
us500 d 1904

Nasdaq 100 closed yesterday below support at around 17,478, just above the 100 DMA and above the lower boundary of the Ichimoku  Cloud - shaded area that should be regarded as a support.

Overnight, the Future/USNAS100 CFD spiked below support at 17,159, almost touching 17,000, and also spiked below the Cloud but is, at the time of writing, trading a few cents back above.

If the Nasdaq 100 closes below the Cloud, we are likely to see further downside. Nasdaq 100 (cash index) support is at 17,128-16,963.

The RSI is showing negative sentiment, supporting the bearish outlook short-term.

To negate this, a daily close above 18,000 is required

nasdaq d 1904

USNAS100 cfd levels: Support at 16,930. Resistance at 17,780

usnas100 d 1904


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 (
Full disclaimer (
Full disclaimer (

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

Contact Saxo

Select region


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.