Technical Technical Technical

Technical Update - US Indices taking out strong supports

Equity 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  US Indices have broken important support levels confirming bearish trends on both short and medium term. Selling pressure is continuing this morning with Index futures pointing to lower opening. Selling pressure could continue for a few more days


S&P 500
S&P 500 closed Friday below the 200 SMA fast approaching the support area 4,363-4,300. If Index closes below 4,300 it can fuel a massive sell off since there is not much support before around 3,700.

Source: Saxo Group

On the Weekly time period S&P500 closed well below the longer term rising trend line confirming the bear trend. 4,300 area could be crucial for the performance for the rest om 1H 2022.

Source: Saxo Group

US500 CFD (future)

The future/ USNAS500 CFD is pointing to a much lower opening, -1.00% at the time of writing. The strong support at around 4,262 is likely to be tested this week. minor support at current levels at around 4,338

Source: Saxo Group

Nasdaq 100 & USNAS100 CFD (future)
Nasdaq 100 closed a few points below its strong support at 14,481.  The Nasdaq future/USNAS CFD points to an open 1.50% lower trading around 14,196 at the time of writing. No support before 13,838. 

Source: Saxo Group
Source: Saxo Group
Russell 2000

Russell 2000 Small cap index is hit by heavy selling. Next strong support is around 1,945. A close below next support is around 1,750.

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/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.