- A new all-time high for the S&P 500 index was formed yesterday at 5,654.1.
- The Nasdaq rose yesterday to levels of 20,758.4.
Graphical analysis of the S&P 500
Yesterday, a new all-time high was formed for the S&P 500 index at 5654.1. After that, the index loses momentum and starts a bearish consolidation to find support at the level of 5577.0. During the Asian session this morning, we saw a slight bullish consolidation up to 5595.0. Here, we find resistance for now, and additional pressure is exerted by the EMA 50 moving average, which is located in the area around the levels of 5600.0.
This could negatively impact the S&P 500 and push it to the bearish side. Possible lower targets are 5570.0 and 5560.0 levels. Further support awaits us at the 200 EMA at the 5560.0 level. We need a positive consolidation and a return above the 50 EMA and 5600.0 for a bullish option. This extends this morning’s bullish consolidation. Possible upper targets are 5610.0 and 5620.0 levels.
Nasdaq Chart Analysis
The Nasdaq rose yesterday to the level of 20758.4. The US inflation data influenced us to see the index retreat to the level of 20152.9. The rapid decline broke the support of the EMA 200 moving average. During the Asian session this morning, there was no significant change in the trend. The index moved in the range of 20200.0-20250.0. We are waiting for the US session and the PPI report for a more concrete step on the chart.
A hold at the support zone could generate momentum below and form a new weekly low. Possible lower targets are the 20100.0 and 20000.0 levels. We need a positive consolidation and a return above 20260.0 and the 200 EMA for a bullish option. With such a move, we would start the recovery and the Nasdaq would have a chance to recover from yesterday's drop.
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(tags to translate)Nasdaq