U.S. Indices Technical Outlook:
- S&P 500 takes a tough hit off the 200-day, may very well be starting of broader transfer
- Nasdaq 100 is in a precarious place right here because it turns decrease
S&P 500 and Nasdaq 100 Technical Outlook: Watch How a Bounce Unfolds
The market has been rolling over onerous the previous few days and on that we could also be in the starting levels of one other main bear leg decrease. The considering has been that the summer time rally was going to ultimately stall inside the context of an ongoing bear market that began at the starting of the 12 months.
The S&P 500 turned decrease from the 200-day shifting common/trend-line/spring-time resistance, which was anticipated even when the market was to proceed on increased. But given the quantity of momentum now we have seen it’s wanting extra like the finish of the summer time rally versus a correction throughout in it.
With that in thoughts it will likely be fascinating to see how any bounce unfolds as soon as a short-term low unfolds. The considering is that we received’t exceed the current excessive at 4325. We may get again as much as that time, however is unlikely a sustained transfer past it may develop if that is the starting of a fall swoon.
Looking decrease, it’s onerous to search out high quality help in the present neighborhood so we might want to monitor worth motion intently for potential short-term lows ought to a bigger transfer develop. Within the framework that that is the starting of renewed weak point, the anticipation is that we are going to see the low at 3636 taken out sooner or later this fall.
S&P 500 Daily Chart
The Nasdaq 100 will nearly definitely be the chief on the draw back because it comprises the market darlings as its major driver. The channel line from late December was exceeded just lately, however has didn’t act as help on this down-move. The 12897 degree is a degree to look at proper now, the market is at the moment buying and selling proper on it. There is a few help to look at round 12150/50 degree, a good distance down however may come into play rapidly. Broadly talking, searching for the 11037 low to get damaged this fall. As lengthy as 13720 isn’t exceeded then the bearish outlook will stand from the place I sit.
Nasdaq 100 Daily Chart
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—Written by Paul Robinson, Market Analyst
You can comply with Paul on Twitter at @PaulRobinsonFX