- Yesterday's strong bullish consolidation took the S&P 500 index to a new all-time high of 5773.2
- On Wednesday, the Nasdaq broke above the 20,000.0 level again.
S&P 500 graphical analysis
Yesterday's strong bullish consolidation pushed the S&P 500 index to a new all-time high of 5773.2. After a brief consolidation in that area, the index lost momentum and began a pullback towards the 5,720.0 level. Shortly after that, we found new support and moved back above the 50 EMA. During the Asian session this morning, the S&P 500's movement was calm in the 5740.0-5755.0 range.
In the EU session, we see a slight increase in bearish pressure and a fall of the index to the level of 5730.0. If this scenario continues, the S&P 500 will have to look for a new support level. Possible lower targets are the 5720.0 and 5700.0 levels. For a bullish option, we need a positive consolidation and a jump to the level of 5760.0. After that, we can expect to start further growth and reach the previous high. The highest potential targets are the 5770.0 and 5780.0 levels.
Nasdaq Chart Analysis
On Wednesday, the Nasdaq broke above the 20,000.0 level again. The index gained new momentum there and continued up to 20318.9. At that level, we had strong resistance to further continuation, which had the effect of initiating a bearish consolidation and a return to the 20000.0 level. During the Asian session this morning the movement occurred in the range 20070.0-20140.0. Nasdaq tries to maintain this range despite bearish pressure.
A return of the index above the daily opening level would be an excellent indicator that we have enough strength to initiate a bullish consolidation. The highest potential targets are the 20200.0 and 20300.0 levels. We need a negative Nasdaq consolidation below the 20000.0 level for a bearish option. With that step, we press yesterday's low. This time, we need a break below and the formation of a new low to confirm the bearish momentum. The lowest possible targets are the 19900.0 and 19800.0 levels.
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