Technical Update - US stock Indices failing to break key resistance levels. Lower levels ahead for SP500, Nasdaq and Dow Jones Technical Update - US stock Indices failing to break key resistance levels. Lower levels ahead for SP500, Nasdaq and Dow Jones Technical Update - US stock Indices failing to break key resistance levels. Lower levels ahead for SP500, Nasdaq and Dow Jones

Technical Update - US stock Indices failing to break key resistance levels. Lower levels ahead for SP500, Nasdaq and Dow Jones

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  US stock Indices failing to break key resistance levels. Sellers back in control could push S&P500 , Nasdaq and Dow Jones lower in coming week
S&P 500 / US500 cfd
Nasdaq 100 / USDNAS100 cfd
Dow Jones Industrial / US30 cfd


S&P 500 has failed to close the gap before sellers took back control. To close the gap a close above 4,402 is needed.

RSI is showing negative sentiment with no divergence indicating lower levels are likely. A bearish move to test the support at around 4,212 once again is in the cards

A close above 4,402 will demolish the bearish picture and could fuel a short rally to around 4,461

Source all charts and data: Saxo Group

US500 cfd: jumped to the 0.618 Fibonacci retracement at 4,395 before Sellers have regained control.

A close above 4,400 could push US 500 to resistance at around 4,466

Nasdaq 100 was rejected at the upper falling trendline and have failed to close above the Cloud (Shaded area)
Closed Friday just a few cents above the Gap area, if Nasdaq is closing below 14,849 expect further selling down to support at around 14,254 possibly lower.

RSI was rejected  at the 60 threshold i.e., still in negative sentiment indicating the Nasdaq Index is likely to trade lower in coming days and week. If RSI is closing back below 40 selling pressure could increase pushing Nasdaq 100 below 14K

For Nasdaq 100 to establish a bullish trend a close above 15,334 is needed.

cfd rejected at upper falling trendline. RSI rejected at 60. USNAS100 is likely to resume downtrend towards 14,250. Minor support at around 14,500

To demolish the bearish picture a close above 15,340 is needed

Dow Jones Industrial Avg. DJI has been rejected four days in arow at the resistance at around 33,883.
The Index needs to close above for a move higher. However, the falling trendline and the 55 and 100 Moving Averages are providing resistance and indicating underlying bearish trend

RSI in negative sentiment with no divergence indicating likely lower levels for Dow Jones. A bearish move towards 31,740 could be seen.
Support at around 32,752
US30 cfd resistance at around 34,022. A break above could lead to a short rally to 34,500-34,600.
A break below 33,448 downtrend is resumed with a likely bearish move to around 31,800 
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.