Technical Update - Rebound in US equities struggling to gain momentum and seems to fizzle Technical Update - Rebound in US equities struggling to gain momentum and seems to fizzle Technical Update - Rebound in US equities struggling to gain momentum and seems to fizzle

Technical Update - Rebound in US equities struggling to gain momentum and seems to fizzle

Equity 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

S&P 500 broken short-term falling trend but resistance at 3,810 could be a struggle to break. Nasdaq 100 rejected at its falling trendline, testing support. A fresh look at Russell 2000 Small Cap Index that stands on solid ground, but will it hold for another test


S&P 500
closed yesterday above its short-term falling trendline trying to close above the GAP but failed. However, key resistance for S&P 500 is at around 3,810. S&P must close above that level to gain upside momentum and even if it does 3,907 will be a tough test.

IF S&P 500 slides back and closes below 3,678 followed by a close back below the upper falling trend line selling is likely to accelerate driving the Index to lows around 3,491 possibly lower.
An RSI close below its rising trendline would be a strong indication of this scenario to unfold.


Source: Saxo Group
Nasdaq 100 was rejected yesterday at its upper falling trendline in the falling channel the Index has been formed over the past couple of months.
If closing below yesterday’s low and support at around 11,035 October lows at 10,440 is likely to be taken out.  
For Nasdaq 100 gain upside momentum a close of the Gap is needed. But even if that occurs there is strong resistance at around 11,660 and around 12,060. The declining 55 and 100 MSA’s will also provide resistance
Source: Saxo Group

The Russell 2000 Small Cap Index is having strong support at around 1,653. It is the upper level of the Consolidation area going back to 2020. There is RSI divergence on weekly time period suggesting a rebound. A rebound that has started and could take Russell 2000 resistance at around 1,900.
However, for the short-term for the rebound to maintain upside momentum it must close above 1,776. It has broken the falling trend line but 1,776 could prove to be too hard to break.
If Russell 2000 instead slides lower moving back below the falling trend line on daily time period and RSI closes below its lower falling trend line on both daily and weekly, the Small Cap Index could drop to around 1,500-1,467.

Source: Saxo Group

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
Beethovenstrasse 33
CH-8002
Zurich
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.