- During the Asian session this morning, the S&P 500 pulled back slightly to reach support at 5730.0.
- On Tuesday, the Nasdaq index rose back above the 20,000.0 level and the weekly opening price.
S&P 500 graphical analysis
During the Asian session this morning, the S&P 500 pulled back slightly to reach support at 5730.0. From that level, we turn again to the bullish side and we are now at the 5740.0 level. We expect to see further continuation of the bullish consolidation and rise to the 5750.0 level. We are moving above the daily opening level to the positive side. The S&P 500 could then test the previous high at 5757.4.
The highest potential targets are the 5760.0 and 5770.0 levels. For a bearish option, we need a negative consolidation and a pullback of the index below the level of 5730.0. With that step, we fall below the 50 EMA and look towards the 200 EMA, which is located in the 5720.0 area. If it does not hold even here, the S&P 500 will continue its decline. Possible lower targets are the 5710.0 and 5700.0 levels.
Nasdaq Chart Analysis
On Tuesday, the Nasdaq index rose back above the 20,000.0 level and the weekly opening price. We also formed a new weekly high last night at the 20141.7 level. During the Asian session this morning, the index retreated to the 20010.0 level and retested the weekly opening level, turning to the bullish side again. We are currently at 20070.0 and seeing slight bullish consolidation.
The highest potential targets are the 20150.0 and 20200.0 levels. For a bearish option, we need a negative consolidation and a return below the weekly opening level. With that step, we turn to the bearish side again and will be under pressure to continue the pullback. One step below the 19900.0 level, we are descending towards the 200 EMA. Without its support, the Nasdaq will be exposed to bearish pressure and we will see another pullback. The lowest possible targets are the 19850.0 and 19800.0 levels.
(the_ad id=”24160″)
!function (f, b, e, v, n, t, s) {
if (f.fbq) return;
n = f.fbq = function () {
n.callMethod ?
n.callMethod.apply(n, arguments) : n.queue.push(arguments)
};
if (!f._fbq) f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = ();
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)(0);
s.parentNode.insertBefore(t, s)
}(window, document, ‘script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘504526293689977’);
fbq(‘track’, ‘PageView’);
