Technical Update - S&P 500 and Nasdaq 100 bouncing from key support. Trend reversal or just a correction?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
S&P 500 bounced in late session yesterday from support at around 3,900. The bounce could continue a couple of days up to around the 0.382 retracement of the past two weeks sell-off at around 4,064 before bear trend is likely to resume.
A close below 3,900 is likely to fuel another sell off down to June lows around 3,636. Support at around the 0.764 retracement and at 3,738.
RSI is below 40 threshold indicating lower levels. But needs to be confirmed with an Index close below 3,900.
A close above 4,305 will demolish this bearish picture. A possible scenario is indicated by arrows on the chart
Nasdaq 100 bounce yesterday to close above key support at 12,046. A bounce to around the 0.382 retracement of the past two weeks selling at around 12,665 is likely. However, a close below 12K and the bear trend will resume pushing Nasdaq 100 down to test June lows at around 11,037.
A close above 13,176 will demolish this bearish picture – at least short term.
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