U.S. Indices Technical Outlook:
- S&P 500 nonetheless has room to rally earlier than massive resistance comes into play
- Nasdaq 100 is buying and selling round significant resistance presently
S&P 500 and Nasdaq 100 Technical Outlook for the Days Ahead
The S&P 500 continues to take again losses skilled throughout the first half of the yr, however in some unspecified time in the future with the rally considered as solely a restoration it’s anticipated that we are going to see a significant flip decrease develop.
The timing of a restoration bounce by way of summer time in the direction of fall is lining up properly for an old-school macro-style downturn into the worst interval of the yr for shares. From the place shares will begin to flip down from, although, is the massive query.
The S&P nonetheless has a bit room to run earlier than a peak could also be seen. The 4200 stage is seen as probably fairly significant. If a noteworthy high doesn’t develop there, then a run in the direction of the declining 200-day and trend-line off the document highs could also be so as. That would get us to the low 4300s. This is seen as the greatest case state of affairs for shares.
We are seeing a bit weak spot to start out the week, however barring it morphing into main promoting it’s only considered as interim weak spot earlier than one other push larger develops. There is a steep trend-line rising up from the center of July that will flip momentum again larger. Hard to say, although, with out additional buying and selling to find out the place shares might flip again larger from. A shallow pullback/consolidation may agency up the outlook for a continuation trade in the direction of 4202.
S&P 500 Daily Chart
The Nasdaq 100 is at a really fascinating juncture proper now, with massive resistance standing in its manner round 12950. We are seeing value stall and whereas it may put a dent in the rally, larger ranges could possibly be round the bend with the S&P nonetheless trying prefer it has upside room.
I’ll be watching to see how the market reacts off resistance. If we see a pointy downturn quickly then maybe the tides in the market are beginning to flip already. If resistance might be overcome then watch the channel line off the December peak, presently round the 13275 mark.
Nasdaq 100 Daily Chart
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—Written by Paul (*500*), Market Analyst
You can observe Paul on Twitter at @PaulRobinsonFX