- This week has not been kind to the S&P 500 index
- The Nasdaq index value retreated to the support level of 19614.1 on Tuesday.
S&P 500 graphical analysis
This week has not been kind to the S&P 500 index. On Tuesday we had a strong bearish consolidation; On Wednesday we formed a new weekly low at the level 5673.1. From then until now we see a sideways movement of the index in the range 5675.0-2720.0. Additional pressure on the upper zone makes the 200 EMA a moving average. Today's outlook has slight positive signs as support has increased to the 5695.0 level.
Expectations are growing that the S&P 500 will have enough strength to jump above the 200 EMA and continue towards the weekly opening zone around 5730.0. If we achieve this, optimism about the continuation to the bullish side will increase. The highest potential targets are the 5740.0 and 5750.0 levels. For a bearish option, we need a negative consolidation and a pullback of the index below the level of 5680.0. With those steps, we will put pressure on the support zone and we need a break below to confirm the bearish scenario. Possible lower targets are 5670.0 and 5660.0 levels.
Nasdaq Chart Analysis
The Nasdaq index value retreated to the support level of 19614.1 on Tuesday. After that, the index begins initial consolidation in the range 19650.0-19850.0. During the Asian session this morning, we approached the upper line of the current range and there we met the 200 EMA. To continue on the bullish side, we need momentum above at least the 19900.0 level.
That should leave plenty of room for the Nasdaq to consolidate above the 200 EMA and continue rising. The highest potential targets are the 19950.0 and 20000.0 levels. For a bearish option, we need a negative consolidation and a pullback to the support level of 19650.0. This puts pressure on this week's support zone. A new pressure could easily push the Nasdaq to a new low and thus confirm the move towards the bearish side. Possible lower targets are 19600.0 and 19550.0 levels.
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