Details Cookies
Important margin product information
CFDs and forex spot transactions are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor lose money when trading CFDs and/or forex spot with this provider. 0.56% of retail clients trading in leveraged products experience a negative account balance after a stop out occurred. You should consider whether you understand how CFDs, forex spot transactions or any of our other products work and whether you can afford to take high risk of losing your money.
Cookie policy

This website uses cookies to offer you a better browsing experience by enabling, optimising and analysing site operations, as well as to provide personalised ad content and allow you to connect to social media. By choosing “Accept all” you consent to the use of cookies and the related processing of personal data. Select “Manage consent” to manage your consent preferences. You can change your preferences or retract your consent at any time via the cookie policy page. Please view our cookie policy here and our privacy policy here

Technical Update - Top in place for S&P 500 & Nasdaq 100. Russell 2000 in downtrend. VIX bouncing from support Technical Update - Top in place for S&P 500 & Nasdaq 100. Russell 2000 in downtrend. VIX bouncing from support Technical Update - Top in place for S&P 500 & Nasdaq 100. Russell 2000 in downtrend. VIX bouncing from support

Technical Update - Top in place for S&P 500 & Nasdaq 100. Russell 2000 in downtrend. VIX bouncing from support

Equities 3 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  S&P 500 and Nasdaq 100 have formed top and reversal patterns. Downtrend not yet confirmed with supports still holding on.
Russell 2000 small cap Index in confirmed downtrend.
VIX Index bouncing from strong support.
Prepare for a volatile May.

S&P 500 has formed a top and reversal pattern in the form of an Evening Doji star like pattern (circled).
Ideally the body of the Doji should not be covered by either of the candles on both sides but with the Doji being a Gravestone Doji combined with the divergence on RSI it is a strong top and reversal signal.

For this top and reversal pattern to be cancelled and for S&P 500 to resume uptrend a close above the height of the Doji is needed i.e., above 4,187.
S&P 500 is close to test the lower short-term rising trendline and a break below support at around 4,050 is to be tested and likely to be broken.
Strong support at around 4K where 100 daily Moving Average will add to it.

Source all charts and data: Saxo Group

US500 cfd. Top and reversal indication. Support at 4,050. A break below there is support at 4K. For US500 to resume uptrend a close above 4,188 is neded.

Nasdaq 100 has formed a top and reversal pattern almost similar to the one on S&P 500.
RSI divergence suggests uptrend is weakening and could reverse.
If Nasdaq 1000 drops below 12,724 the lower rising trendline and support at around 12,563 is likely to be tested.
Nasdaq will most likely also find some support at the cloud currently rising. However, a close below 12,563 could fuel a sell-off down to around 11,830

To demolish the top and reversal pattern and resume uptrend, a close above 13,288 is needed. If that scenario plays out a move to around 13,700 resistance area is in the cards.

USNAS100 cfd: Strong support at around 12,807-12,717. A break below rising trendline and the support area could lead to selling pressure to 12,440.

Russell 2000 small cap index is in a downtrend after lower close yesterday. The Index has set its eyes on support at around 1,650. Some support at around 1,722.

There is strong overhead resistance with 21, 55 and 100 daily Moving Averages declining. 55 Moving Average has crossed below the 100 Moving Average thus drawing a Death Cross.

VIX index (future) has bounced from support at around 16.55. If the Index future breaks above 21.20 the falling trendline in the Descending triangle like pattern could be tested. (Weekly chart)
A break above the the trendline there could be upside potential to 33 – 36.


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 (
Full disclaimer (
Full disclaimer (

Saxo Bank (Schweiz) AG
Beethovenstrasse 33

Contact Saxo

Select region


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.