Technical Update - S&P 500 testing key resistance. Nasdaq struggling to keep up. Dow Jones in strong uptrend Technical Update - S&P 500 testing key resistance. Nasdaq struggling to keep up. Dow Jones in strong uptrend Technical Update - S&P 500 testing key resistance. Nasdaq struggling to keep up. Dow Jones in strong uptrend

Technical Update - S&P 500 testing key resistance. Nasdaq struggling to keep up. Dow Jones in strong uptrend

Equity 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

S&P 500 closed Friday just a few points below key resistance at 3,907. RSI closed also below its threshold at 60 i.e., still showing negative sentiment.
S&P is trading lower in early session Monday and the Index over the next couple of days closes below 3,800 bear trend is likely to resume. If RSI is failing to close above 60 and instead gets rejected it will confirm that scenario.

If S&P500 instead manages to climb higher and close above 3,907 the Index could get momentum towards the medium-term falling trendline (Black line) with strong resistance at around 4,119.

Source all charts and data: Saxo Group

Nasdaq 100 has dropped back after testing key resistance and the 0.382 retracement around 11,660.
If the Nasdaq Index drops lower to close below 11,176 the bear trend has resumed for likely new lows.
RSI didn’t even test the 60 threshold and if breaking back below 40 and its lower rising trendline it will support the bearish picture.

Dow Jones Industrial Av. Index has outperformed the other two the past couple of weeks experiencing a strong rally off lows.
Closing above 200 daily SMA Friday Dow Jones could test the resistance at around 33,292 and the medium-term falling trendline.

RSI is above 60 with no divergence supporting the short-term uptrend and the likelihood of higher levels.
Medium-term trend is still however, and Dow Jones needs to close above 34,282 to reverse that. If weekly RSI closes above 60 there is great likelihood that scenario will play out. RS is currently below 60 and showing negative sentiment.

 

 

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 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 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-hk/legal/disclaimer/saxo-disclaimer)

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 is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo Capital Markets HK Limited 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

By clicking on certain links on this site, you are aware and agree to leave the website of Saxo Capital Markets, proceed on to the linked site managed by Saxo Group and where you will be subject to the terms of that linked site.

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

Please note that the information on this site and any product and services we offer are not targeted at investors residing in the United States and Japan, and are not intended for distribution to, or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Please click here to view our full disclaimer.