Technical Update - S&P 500 forming top and reversal pattern. Nasdaq back in bear move. Dow Jones running out of steam Technical Update - S&P 500 forming top and reversal pattern. Nasdaq back in bear move. Dow Jones running out of steam Technical Update - S&P 500 forming top and reversal pattern. Nasdaq back in bear move. Dow Jones running out of steam

Technical Update - S&P 500 forming top and reversal pattern. Nasdaq back in bear move. Dow Jones running out of steam

Equity 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

S&P500 rejected at key resistance. Bear trend to resume. 3,200 is in play
Nasdaq 100 bear trend confirmed. 10K is in sight. 
Dow Jones running out of steam. Likely to slide lower 



S&P500
has been rejected at strong resistance at 3,907. RSI was rejected at 60 threshold indicating the October corrective uptrend is over. Minor support at 3,726 is likely to be broken and S&P 500 seems to be set for a test of key support at 3,647. If RSI closes below 40 the bear trend is confirmed. A Bearish trend that is likely to take S&P500 back to October lows around 3,491.
 S&P 500 must close above 3,912 to extend the corrective uptrend for a move to 4,100

If S&P 500 closes below October low at 3,491 previously mentioned target and strong support around 3,200 is still in play

Source all charts and data: Saxo Group

US500 cfd/S&P500 future is drifting lower below 0.382 retracement at 3,751. RSI which rejected at 60, is at the time of writing below its rising trend line indicating lower levels for US500.
Support around 3,651-3,630 to be tested is likely

 

Nasdaq 100 has resumed bear trend with a close yesterday below 10,962. RSI was rejected at 60 and a close below 40 and its rising trendline will further confirm the bearish picture that is likely to take Nasdaq 100 to test October lows around 10,449 possibly lower.If Nasdaq 100 closes below 10,449 there is not strong support until around 9K.

USNAS100 cfd/Nasdaq future is continuing the sell-off that his market yesterday and could test October lows around 10,430 in a few days, possibly before end of week. That scenario is likely to play if RSI breaks below 40.

 

Dow Jones Index seems to have run out of steam at the 0.786 retracement just before the strong resistance at 33,292. Support at the 0.382 retracement around 31,386. If Dow Jones trades below its 556 SMA it is likely to test strong support around 3,206.
For Dow Jones to resume uptrend and extent it a close above 33,292 is needed.

Note: Author of this article is holding a short position in USNAS100
Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, 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. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such 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.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.