Technical Update - S&P 500 & Nasdaq could cancel reversal patterns and extend uptrend despite warning signals Technical Update - S&P 500 & Nasdaq could cancel reversal patterns and extend uptrend despite warning signals Technical Update - S&P 500 & Nasdaq could cancel reversal patterns and extend uptrend despite warning signals

Technical Update - S&P 500 & Nasdaq could cancel reversal patterns and extend uptrend despite warning signals

Equities 3 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Technical analysis S&P 500/US500 & Nasdaq/USNAS100 could cancel reversal patterns and extend uptrend despite warning signals
Despite technical indicators suggesting the bullish trends are weakening S&P 500 top and reversal pattern could be cancelled today and uptrend to be extended. Lagging Nasdaq 100 could test last week’s peak shortly

S&P 500 has spiked to new 2022 highs two days in a row but has so far not managed to close above the Evening Doji top and reversal pattern (circled on the chart). To do that it requires at close above 4,579

But maybe today is the day it will do just that. Pre-market the S&P 500 future and the US500 cfd (see daily chart further below) are trading around 4,600 lifted by Meta trading +8% in Pre-Market after earnings release After Hours.

If S&P 500 is closing at or above 4,579 the top and reversal pattern has been cancelled and the Index is set for higher levels. Resistance at around 4,637.

However, there is divergence on RSI, MACD and traded volume. RSI and MACD values are declining and so is traded volume i.e., Divergence or imbalance in the market. In other words the uptrend is fragile and weakening. It is a warning sign but not a reversal signal.

If RSI closes above 76.36 the divergence is cancelled supporting even higher Index highs.

If buyers fail to close S&P 500 at or above 4,579 a correction will almost be a given. Support at around 4,455. First indication of a trend reversal would be a bearish break of the very short-term lower rising trendline

Source all charts and data: Saxo Group

US500 cfd:

Nasdaq 100 has been lagging S&P500 lately but seems to be playing catch up. The future and USNAS100 cfd are trading 1% higher pre-market approx. 200 points below last week’s peak.

Nasdaq 100 is finding support at the short-term rising trendline and the Future/USNAS100 is bouncing from it.
If closing above 15,500 the uptrend is being extended towards 17K.

A close below 15,374 will reverse the uptrend. Divergence on RSI, MACD and Volume i.e., weakening of the uptrend

USNAS100 cfd:


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 (
- Full disclaimer (
- Full disclaimer (

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

Contact Saxo

Select region


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.