- On Tuesday, the S&P 500 retreated from an all-time high to the weekly opening level in the 5800.0 zone.
- On Tuesday in the US session, the Nasdaq came under a lot of pressure, resulting in a bearish momentum from 20495.0 to the $20087 level.
S&P 500 graphical analysis
On Tuesday, the S&P 500 retreated from an all-time high to the weekly opening level in the 5800.0 area. During the Asian session this morning, the index moved in the range 5810.0-5825.0. In the EU session we continue in the same direction without great volatilities. We remain above the weekly opening level, while at the top we have resistance at the 50 EMA. We are approaching the start of the US session and expect an increase in market volatility.
With momentum above the 50 EMA, there is room for bullish consolidation. The highest potential targets are the 5840.0 and 5860.0 levels. For a bearish option, the S&P 500 would have to fall below the weekly opening level. In this way, we reach a new low and confirm the downward pressure on the index. Possible lower targets are the 5780.0 and 5760.0 levels. Additional support and the first obstacle for further decline are the 200 EMA and the 5780.0 zone.
Nasdaq Chart Analysis
On Tuesday in the US session, the Nasdaq came under a lot of pressure, resulting in a bearish momentum from 20495.0 to the $20087 level. Next, we encountered the 200 EMA, which stopped further decline and took us back to the 20160.0 level. During the Asian session this morning the movement of the Nasdaq was in the range 20160.0-20230.0. We need fresh momentum to get back on the positive side above the weekly opening level.
If the index achieves this, it will be in a better position to start a bullish consolidation. The highest potential targets are the 20300.0 and 20400.0 levels. For a bearish option, we need a negative consolidation below the 200 EMA and the 20150.0 level. With this step we increase the momentum to continue towards the bearish side. After that, it is left for the Nasdaq to begin to pull back and look for a new support level. Possible lower targets are the 20100.0 and 20000.0 levels.
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