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.
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.