120419 WallstrM 120419 WallstrM 120419 WallstrM

Technical Update - S&P 500 testing medium term falling trend. Nasdaq 100 struggling to gain upside momentum

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

S&P 500 is bring rejected at the medium-term falling trendline just a few points shy of the strong resistance at 4,110. This week and especially the end to the week could be crucial for rest of the year. If S&P500 closes above 4,110 there is room for more upside towards 4,200-4,300.
But if S&P500 closes below 3,990 the support at 3,906 is likely to be tested and lower levels below 3,900 towards the end of the year should be expected
RSI break out direction from its narrow slightly rising channel could be a guide for the scenario to play out.

SP500 d 5dec
Source: Saxo Group

US500 cfd seems to be forming a rising wedge like pattern losing steam just shy of strong resistance at around 4,119. A close above could extend the uptrend to 4,300.
A bearish break out of the wedge i.e., a close blow lower rising trendline could spur a sell off down to 3,800.

 

US500 d 5dec

Nasdaq 100 is struggling to close above resistance at 12,060. A close above is needed for Nasdaq to regain traction moving higher towards resistance at 12,467 and the upper medium-term falling black trend line.
If Nasdaq drops back and closes below 11,450 bear trend is set to resume. The Index could then be set for a test of the October lows.
RSI closed above the 60 threshold on the last trading day of November thereby showing bullish sentiment indicating higher levels. Next couple of days are likely to be crucial

Nasdaq100 d 5dec
Source: Saxo Group

USNAS100 cfd is struggling to close above 12,047 resistance which is needed for further upside for next resistance at 12,771 and getting back above 200 daily SMA 
Support at 11,445 . If breaking below USNAS100 could quickly shed 1K points dropping to test October lows.

USNAS100 d 5dec

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • 350x200 peter

    Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • 350x200 althea

    Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • 350x200 peter

    Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • 350x200 charu (1)

    FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • 350x200 ole

    Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article

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.