Technical Update - Mixed picture in US Equities: S&P 500, Nasdaq 100 & Dow Jones Industrial Technical Update - Mixed picture in US Equities: S&P 500, Nasdaq 100 & Dow Jones Industrial Technical Update - Mixed picture in US Equities: S&P 500, Nasdaq 100 & Dow Jones Industrial

Technical Update - Mixed picture in US Equities: S&P 500, Nasdaq 100 & Dow Jones Industrial

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary: 
S&P 500 bounce facing strong resistance. 4,100 is key
Nasdaq 100 still depressed managed to keep itself above October lows but for how long. Strong overhead resistance levels. Index could be range bound coming weeks
Dow Jones Industrial broke short-term deadlock and is set for higher levels


S&P 500 tested the resistance at 3,906 Friday. A close above is likely to push the index to test the upper medium-term failing (black) trendline and 4.000.
S&P 500 could spike higher above 4K to 0.786 projection but needs to close above 4,100 to reverse the medium-term downtrend.
200 daily SMA which is declining provides some resistance. RSI is in bearish sentiment after it closed below 40 threshold 28the December (circled) and if the Index closes below 3,780 bear trend is  set to resume with some support at 3,719.

Source all charts and data: Saxo Group

 

Nasdaq 100 has managed to keep above October lows and could bounce to 11,360-11,450. Earnings season has been kicked off and Nasdaq could experience quite a lot of volatility next couple of weeks but could be caught in range between 11,450 and 10,481. Break out is needed for direction.

If moving higher to close above 11,450 Nasdaq 100 could test its medium-term failing (black) trendline.
However, indicators point to lower levels. RSI is showing negative sentiment and there is no divergence, 200,0100 and 21 daily SMA’s are all declining. A close below 10,481 could fuel heavy selling towards support at around 9,736.

Dow Jones Index broke the deadlock Friday by closing above 33,438 and now seems to be set for a re-test of 34,500 level. A close above is likely to push the Index towards next resistance at around 35,492.
The medium-term trend is up supported by positive RSI sentiment on weekly chart and a close above 35,492 will further add to the uptrend scenario.
To reverse the short-term uptrend a close below 32,581 is needed.

 

RSI divergence: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend

Disclaimer

The Saxo 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 is not intended to and does not change or expand on this. 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 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 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 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 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 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-hk/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo or its affiliates.

Saxo Capital Markets HK Limited
19th Floor
Shanghai Commercial Bank Tower
12 Queen’s Road Central
Hong Kong

Contact Saxo

Select region

Hong Kong S.A.R
Hong Kong S.A.R

Saxo Capital Markets HK Limited (“Saxo”) is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo holds a Type 1 Regulated Activity (Dealing in Securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged Foreign Exchange Trading); Type 4 Regulated Activity (Advising on Securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products may result in your losses exceeding your initial deposits. Saxo does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo does not take into account an individual’s needs, objectives or financial situation. Please click here to view the relevant risk disclosure statements.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-hk/about-us/awards.

The information or the products and services referred to on this site may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and services offered on this website are not directed at, or intended for distribution to or use by, any person or entity residing in the United States and Japan. Please click here to view our full disclaimer.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc. Android is a trademark of Google Inc.