Technical Update - Nasdaq 100 and S&P 500
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: US Stock market gapped lower at the opening yesterday. What should be the key focus over the next couple of days is whether Bulls can close the gap. If the gap is closed we are likely to see a re-test of key resistance levels
Nasdaq 100 opened yesterday below 14K but bounced off key support at around 13,837. Three different technical indicators overlap each other around that level; the 55 SMA, the 0.382 Fibonacci retracement level and the mid-February peak where selling resumes after a strong bounce.
If buyers can close the gap next couple of days we are likely to see a re-test of resistance at around 14,504. RSI is still showing positive sentiment and no divergence but MACD line is close to cross over the Signals which would be a bearish signal. A bit of a muddy picture indeed.
However, Market is trading below most medium term and longer term Simple Moving Averages and with yesterdays lower levels short term bear trend is confirmed (Lower Low and Lower High).
Support at 13,354 and around 13,040
S&P 500 bounced off 0.382 Fibo retracement but closed below 200 SMA. If buyers can close the gap next couple of days we are likely to see a re-test of resistance at around 4,591.
However, similar to Nasdaq 100 short term down trend is confirmed but also here RSI with showing positive sentiment without divergence makes the picture a but muddy.
However, big test for S&P500 is the key support at around 4,400.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.