Technical Update - Relief rally in US equities nearing key resistance levels. S&P 500 & Nasdaq 100
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
S&P 500 closed above resistance at 3,974 and above 0.618 retracement but couldn’t close the gap. RSI was also rejected at 60 threshold indicating bear trend could resume. A close of the gap and a close above 4,018, supported by RSI closing above 60, will confirm the uptrend. An uptrend that could take S&P 500 to resistance at 4,073 and key resistance at 4,177.
If S&P 500 fails to close above 4,018 and selling pressure resumes keep an eye on RSI. If it closes below its rising trendline it is a strong indication the relief rally and uptrend is to end and be reversed.
Nasdaq 100 closed above resistance at 12,458 last week with RSI above 60 supporting the short- term uptrend picture. An uptrend likely to continue to test resistance at 12,897. If Nasdaq 100 closes below 12,175 it could be an indication of uptrend is reversing.
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)