Technical Technical Technical

Technical Update - S&P500 and Nasdaq100

Equity 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

S&P500 is testing the 200 Daily SMA and resistance at 4,475. For the leading US Index to fuel further upside a break above 4,490 is needed. If that plays out a move to resistance at around 4,600 is not unlikely. 55 SMA has crossed below 200 SMA and with the RSI (Strength Indicator) struggling to move above 60 (at the time of writing). If RSI cannot close above 60 Bears could get a comeback in the market. However, RSI is still showing Divergence which has not been traded out (can only be done by closing above 60 or dropping below previous RSI lows i.e. January trough)
A daily Index close below 4,400 could accelerate a sell-off to test lows around key support at 4,164

Source: Saxo Group

On the weekly time period S&P500 formed a Bullish Engulfing candle Friday which is a bottom and reversal candle and should support a rebound/further upside picture. However, the RSI is still below 60 i.e. still in bearish sentiment since it was last below 40. To add to that, RSI is below its falling trendline. If RSI fails to close above the rebound could be running out of steam. Medium trend is still down.

Source: Saxo Group

Friday, Nasdaq 100 closed above the resistance at 14,342 but to build on that and move higher from there RSI must close the day above 60. 55 Daily SMA is putting a lid on the upside indicating market to retrace from current levels. 
The Index could be rangebound between 13K and 14,500 for the foreseeable future.

Source: Saxo Group

On the weekly time period Nasdaq 100 formed a Bullish Engulfing pattern. However, if the Index cannot follow through and RSI drops back below 40 this bottom and reversal pattern could be cancelled.

Source: Saxo Group
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) and Type 3 Regulated Activity (Leveraged foreign exchange trading) 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.