US Stocks in correction mode
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: Nasdaq 100 and S&P 500 has formed top and reversal patterns and is ripe for a minor correction
If joined my Webinar yesterday https://www.home.saxo/insights/events-and-webinars you heard me talking about the US stock markets and how they looked set for a correction.
The reason behind my view on a likely correction was the two Doji like candles Friday and Monday on Nasdaq 100 followed by a negative session Tuesday testing the steep short term rising trend line.
Yesterday the Index opened below the trend line and we could very well see lowever levels in the coming 1-2 weeks. Crucial support short term is at around 15.638. A close below is likely to give more selling pressure down to around 15K.
However, the trend is up and as a long Nasdaq 100 closes above 15.638 the bullish picture is intact.
Similar picture on S&P 500. The leading Us Index got rejected at the upper rising medium term trend line (dark blue line) with two Doji’s. Subsequent sell off took the Index close to minor support at 4.6222. Crucial short term bull/bear support is at around 4.551. A close below could lead to sell-off down to around 4.448.