US Stocks in correction mode
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: Nasdaq 100 and S&P 500 has formed top and reversal patterns and is ripe for a minor correction
If joined my Webinar yesterday https://www.home.saxo/insights/events-and-webinars you heard me talking about the US stock markets and how they looked set for a correction.
The reason behind my view on a likely correction was the two Doji like candles Friday and Monday on Nasdaq 100 followed by a negative session Tuesday testing the steep short term rising trend line.
Yesterday the Index opened below the trend line and we could very well see lowever levels in the coming 1-2 weeks. Crucial support short term is at around 15.638. A close below is likely to give more selling pressure down to around 15K.
However, the trend is up and as a long Nasdaq 100 closes above 15.638 the bullish picture is intact.
Similar picture on S&P 500. The leading Us Index got rejected at the upper rising medium term trend line (dark blue line) with two Doji’s. Subsequent sell off took the Index close to minor support at 4.6222. Crucial short term bull/bear support is at around 4.551. A close below could lead to sell-off down to around 4.448.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.
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)