Technical Update - S&P 500 and Nasdaq 100
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: Rebounding US Indices have broken short term resistance levels. Does the rebound have more legs to go?
S&P 500 closed the gap Friday indicating further upside could be seen to strong resistance at 3,974 possibly at test of 4K.
If sellers manage to take back control and push S&P 500 below 3,820 last week’s low at 3,636.
Keep an eye on traded volume. It was higher than normal Friday but need to keep rising/stay high if short term upwards move in the Index should continue.
RSI still showing negative sentiment and no divergence indicating we are likely to see lower lows on the Index
Nasdaq 100 rebound opened Friday above the resistance at 11,825 and closed just shy of 0.618 retracement at 12,187 which is likely to offer some resistance. If breaking above a test of key resistance at 12,458 is likely. If Nasdaq 100 closes above that level the Index is back in to neutral short-term. The divergence on RSI supports the short-term rebound picture.
If rejected selling pressure is likely to resume. If closing below 11,752 selling could intensify pushing the index to new lows.
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)