Technical Update - Nasdaq 100 running away from struggling S&P 500. Russell 2000 bounces Technical Update - Nasdaq 100 running away from struggling S&P 500. Russell 2000 bounces Technical Update - Nasdaq 100 running away from struggling S&P 500. Russell 2000 bounces

Technical Update - Nasdaq 100 running away from struggling S&P 500. Russell 2000 bounces

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  S&P 500 struggling to gain upside momentum and could be range bound for some time. Nasdaq 100 having another go at resistance level. Is third time a charm? Strong rebound in Small Cap Russell 2000 Index


S&P 500 seems indecisive between 3,900 and 4,4040.
At the time of writing the Index is trading above the short-term upper falling trendline. If closing above and above 55 daily MA there could be further upside.

An RSI close above 60 will reverse the current negative sentiment and an Index close above 4,4040 will confirm an uptrend with potential to 4,200.
If S&P 500 slides back to close below the falling trendline it could be range bound for the next few days. Downtrend will resume with close below 3,900.

Source all charts and data: Saxo Group

Nasdaq 100 has failed twice now to close above 12,881 but seems to be working on having another go after opening. The trend is up and if closing above it could give energy to a move to the 1.382 projection at 13,333 with room up to strong resistance at around 13,700 level.
There is minor divergence on RSI which indicates an exhaustion of the trend and if the Index slides back to close below 12,407 sellers could push Nasdaq down to around 12K.

Russell 2000 small cap formed a Bullish Engulfing pattern Friday and combined with RSI divergence a strong bounce to the 0.382 retracement at 1,814 could be seen. If Russell closes the gap created at the open today selling pressure is likely to resume and if Russell 2000 slides back to close below 1,695 bear trend will be extended with support at around 1,653.
The picture described in this analysis: Russell 2000 and S&P 500 are drawing patterns similar to 2007-2008 is still intact.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research 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. To the extent that any content is construed as investment research, you must note and accept that the 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 under relevant laws.

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

Saxo Bank (Schweiz) AG
The Circle 38
CH-8058
Zürich-Flughafen
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.