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Technical Update - Nasdaq 100 at key support, for how long can it hold? SP500 top and reversal still in play

Equities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

The Nasdaq 100 closed on Friday right at the crucial support level of 17,808. If it closes below this level, it could trigger a sell-off towards the next support at around 17,478, with a potential drop to approximately 17,000.

The bearish engulfing top and reversal pattern is still a significant factor, and a close above its peak at 18,417 is required to negate this pattern and signal a resumption of the uptrend.

Over the past two months, the RSI has been showing divergence, which needs to be resolved either by closing below 40 threshold or by making a new high. The more likely scenario seems to be a close below the 40 thresholds, indicating a possible correction down to around 17,000 

nasdaq100 d 1803
Source all charts and data: Saxo Group

USNAS 100 cfd levels. Bouncing from key strong key support at 17,780.If broken next support  and 17,159

usnas100 d 1803

S&P 500. The bearish engulfing top and reversal pattern is also in play here. To negate this pattern, the index would need to close above its peak at 5,190.
S&P 500 is currently testing the rising trendline, and a close below the key support at 5,057 is critical. If it closes below this level, the index could hit byu a sell-off down to around 5,000.

The RSI divergence observed over the past two months needs to resolve by either closing below 40 or achieving a new high.

sp500 d 1803
The US500 CFD is still above the rising trendline. A break below could lead to the US500 testing the support at 5,048, with a further drop possibly leading to a sell-off down to between 5,000 and 4,900.

Conversely, a break above 5,189 would suggest an uptrend continuation.
us500 d 1803

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