- The S&P 500 index managed to reach a new weekly high this morning at 5349.7.
- On Friday, the Nasdaq rose to a new weekly high at the 18,533.5 level.
Graphical analysis of the S&P 500
The S&P 500 index managed to reach a new weekly high this morning at 5349.7. The index has been in a strong bullish consolidation since yesterday’s drop to 5150.0. We now have a new resistance at today’s high and we see a pullback below the 200 EMA moving average. The S&P 500 is now at 5305.0 and we are close to the support level of 5300.0. The 50 EMA moving average has added support in that area. If the support weakens, a drop to a new daily low will occur.
Possible lower targets are the 5275.0 and 5250.0 levels. For a bullish option, we need a positive consolidation, a return above 5340.0 and the 200 EMA. Then, the S&P 500 needs to stabilize there to trigger further bullish consolidation. Possible upper targets are the 5375.0 and 5400.0 levels.
Nasdaq Chart Analysis
On Friday, the Nasdaq reached a new weekly high at the 18533.5 level. It remained there for a short period as the index started losing its earlier momentum. The additional pressure in that area on the 200 EMA influenced us to see the Nasdaq pull back to the 18310.0 level. The bearish momentum is strengthening and we may see a pullback of the index by the end of the day. Possible lower targets are the 18200.0 and 18000.0 levels.
For a bullish option, we need a positive consolidation and a pullback to 18500.0 and the 200 EMA. This time we need the support of the 200 EMA to continue on the bullish side. If we manage to stabilize, we will be in a good position to see the Nasdaq recover to higher levels. Possible higher targets are 18800.0 and 19000.0.
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(tags to translate)Nasdaq
