Technical Update - US Equity Indices
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: US equities experienced a volatile weeks testing important support levels. This week could be rebound week
After a week of massive volatility between 4,200 and 4,430 S&P500 closed Friday within a few points from the 200 Simple Moving Average (SMA). Every day buyers managed to close the Index above 4,300 support which indicates that is the support level to look out for.
This morning the future/ US500 CFD is testing the 200 SMA. If it manage to end the day with a close above the 200 SMA we could very well see further upside to 4,500-4,545 at around the 0.618 Fibonacci retracement. However the road up there can be choppy with high volatility.
USNAS100 CFD/future have bounced off the support at around 13,838 a couple of times just to be rejected at the former support now resistance at around 14,452. This Monday morning buyers seem to succeed in another attempt. If closing the day above there is room up to the 200 SMA and the 0.618 Fibonacci retracement around 15,000-15,140.
If today’s low at around 14,366 is taken out sellers are likely to have another go at the support at 13,838.
Russell 2000 small cap index closed the week above the important and strong support at around 1,945. A rebound could go as high as 2,100 with resistance at around 2,148. Another daily close below 1,945 is likely to resume the bear move.
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.