Technical Update - SP500 and Nasdaq 100 struggling to confirm uptrends. See here why Technical Update - SP500 and Nasdaq 100 struggling to confirm uptrends. See here why Technical Update - SP500 and Nasdaq 100 struggling to confirm uptrends. See here why

Technical Update - SP500 and Nasdaq 100 struggling to confirm uptrends. See here why

Equities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

  • The main US indices and CFD's S&P500/US500 and Nasdaq100/USNAS100 are in the process of building a uptrends
  • The key technical indicators are still lacking in confirmation
  • RSI must close above the 60 threshold for bullish trend confirmation

S&P 500 closed yesterday above the Ichimoku Cloud (shaeded area) and has established a short-term uptrend (higher high and higher low).
The only thing nmissing is that RSI is closing back above the 60 threshold—circled. If that occurs, the uptrend is further confirmed.

If confirmed, S&P 500 could push higher to 5,383–5,457, which are the 1.382 and 1.618 Fibonacci projections respectively, i.e., approximately 3-6% from current levels.

If RSI fails to close above 60, the uptrend could be cancelled and reversed. S&P 500 could slide back to test key strong support at around 4,953.
An indication of this scenario to play out—after RSI has been rejected at 60—would be an RSI close below its lower rising trendline.

Source all charts and data: Saxo Group
US 500 CFD: RSI is required to close above 60 for uptrend confirmation. If that occurs, US 500 has upside potential to 5,411–5,494.

A break below 5,007, the key support at 4,919 is likely to come under pressure.

Nasdaq 100 seems to be building an uptrend but must close above the Ichimoku Cloud (shaded area) and the RSI closing above the 60 threshold to confirm it.
If that occurs, there is upside potential to 19,035.

However, if those two technical indicators do not confirm the uptrend and Nasdaq 100 instead slides back, a daily close below 17,800 could fuel a sell-off down to strong support at around 16,963.

 

US NAS100 CFD seems to be rejected at the upper part of the Cloud, and RSI seems to be rejected at the key threshold at 60.

If US NAS100 closes back below 17,780, a sell-off could push it back down to key support at around 16,965.

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/en-gb/legal/disclaimer/saxo-disclaimer)

Saxo
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo is a registered Trading Name of Saxo Capital Markets UK Ltd (‘Saxo’). Saxo is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo assumes no liability for any loss sustained from trading in accordance with a recommendation.

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. Android is a trademark of Google Inc.

©   since 1992