Technical Update - Nasdaq 100 at key support, for how long can it hold? SP500 top and reversal still in play Technical Update - Nasdaq 100 at key support, for how long can it hold? SP500 top and reversal still in play Technical Update - Nasdaq 100 at key support, for how long can it hold? SP500 top and reversal still in play

Technical Update - Nasdaq 100 at key support, for how long can it hold? SP500 top and reversal still in play

Equities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

The Nasdaq 100 closed on Friday right at the crucial support level of 17,808. If it closes below this level, it could trigger a sell-off towards the next support at around 17,478, with a potential drop to approximately 17,000.

The bearish engulfing top and reversal pattern is still a significant factor, and a close above its peak at 18,417 is required to negate this pattern and signal a resumption of the uptrend.

Over the past two months, the RSI has been showing divergence, which needs to be resolved either by closing below 40 threshold or by making a new high. The more likely scenario seems to be a close below the 40 thresholds, indicating a possible correction down to around 17,000 

Source all charts and data: Saxo Group

USNAS 100 cfd levels. Bouncing from key strong key support at 17,780.If broken next support  and 17,159

S&P 500. The bearish engulfing top and reversal pattern is also in play here. To negate this pattern, the index would need to close above its peak at 5,190.
S&P 500 is currently testing the rising trendline, and a close below the key support at 5,057 is critical. If it closes below this level, the index could hit byu a sell-off down to around 5,000.

The RSI divergence observed over the past two months needs to resolve by either closing below 40 or achieving a new high.

The US500 CFD is still above the rising trendline. A break below could lead to the US500 testing the support at 5,048, with a further drop possibly leading to a sell-off down to between 5,000 and 4,900.

Conversely, a break above 5,189 would suggest an uptrend continuation.
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/legal/disclaimer/saxo-disclaimer)
- Full disclaimer (https://www.home.saxo/en-mena/legal/disclaimer/saxo-disclaimer)


Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.