- On Tuesday, the S&P 500 failed to hold above 5750.0 and we saw a break below
- On Tuesday, the Nasdaq failed to stay above 20,000.0 and broke below
S&P 500 graphical analysis
On Tuesday, the S&P 500 failed to hold above 5750.0 and we saw a break below. The index fell to the level of 5680.0 and we saw the formation of a new weekly low. During the Asian session this morning the movement occurred in the range 5685.0-5710.0. We have additional pressure on the 200 EMA, which is now on the bearish side. This could lead to increased bearish momentum. The S&P 500 will then have to move towards a new lower low.
Possible lower targets are the 5680.0 and 5660.0 levels. For a bullish option, we need a positive consolidation, a jump above 5720.0 and the 200 EMA. With the new support, optimism about further recovery of the index will increase. Momentum above the 5730.0 level takes us back above the weekly opening level. The highest potential targets are the 5740.0 and 5760.0 levels.
Nasdaq Chart Analysis
On Tuesday, the Nasdaq failed to hold above 20,000.0 and broke below. Strong bearish impulses pushed the index lower to form a new weekly low at 19614.1. The market average EMA 200 is now bearish for us and will only increase the pressure on the Nasdaq. During the Asian session this morning the movement occurred in the range 19675.0-19800.0. For a bearish option, we need a negative consolidation and a visit to yesterday's low.
With that step, the pressure on that level will increase and we could see a new low form. Possible lower targets are the 19600.0 and 19500.0 levels. For a bullish call, we need a positive Nasdaq consolidation above the 200 EMA and 19900.0. If the index does something like this, it will be in a good position to start a new bullish recovery. The highest potential targets are the 20000.0 and 20100.0 levels.
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