Technical Update - S&P 500 and Nasdaq 100 approaching key resistance levels. Next couple of days decisive
Kim Cramer Larsson
Technical Analyst, Saxo Bank
S&P 500 is facing its key resistance at 4,177. A daily close above there is strong resistance at 4,300. The declining 200 SMA and the medium term falling (black) trend line add to resistance.
However, if the Index cannot close above with-in the next couple of days a correction is likely. A close below 4,073 S&P 500 is likely to retrace down to around 3,922.
Weekly chart shows why resistance at 4,177 is key. Around that level – 4,164 to be exact – seems to be a Bull/Bear Pivot level.
Back in in February- March it was a strong support and once broken in April it became a strong resistance tested a couple of times in May.
Nasdaq 100 uptrend seems strong. A test of the resistance at 13,542 this week is likely. It can be a struggle to penetrate it however, but if is Nasdaq closes above 14,265 is next strong resistance. Declining 200 SMA will add to the resistance.
If Nasdaq 100 fails to close above 13,542 instead retracing a close below 12,809 could spur a sell-off down to around 12,176.
No divergence on RSI indicates Nasdaq could move higher
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.