- Wednesday October 23rd was very quiet for the S&P 500 as we saw a drop to 5761.8
- The Nasdaq was under a lot of pressure on Wednesday October 23rd and we saw a drop to 19936.3.
S&P 500 graphical analysis
Wednesday October 23rd was very quiet for the S&P 500 as we saw a drop to 5761.8. Previous support at the 5840.0 level did not hold and a pullback followed. After the new low, the index managed to start a bullish consolidation to the level of 5820.0. There we found the 200 EMA moving average, which did not allow us to continue on the bullish side, but a new decline began.
This time we get support at the level 2785.0. During the Asian session this morning, the S&P 500 managed to stabilize and break above the 200 EMA. It would be good to stay there until the end of this week's session to be in a good position for next week. The highest potential targets are the 5840.0 and 5850.0 levels. For a bearish option, we need a negative consolidation of the S&P 500 below the daily opening level of 5810.0. With this step, we strengthen the bearish momentum and the index has to continue its decline. Possible lower targets are the 5800.0 and 5790.0 levels.
Nasdaq Chart Analysis
The Nasdaq was under a lot of pressure on Wednesday October 23rd and we saw a drop to 19936.3. After the formation of a new low, the index begins to recover and returns above the level 20000.0. During the Asian session this morning we get new support at 20250.0. In that area, the 200 EMA creates additional support and the Nasdaq continues to the 20300.0 level. We are a little far from reaching the weekly opening level and turning to the positive side.
The highest potential targets are the 20400.0 and 20450.0 levels. For a bearish option, it is necessary for the Nasdaq to retrace below the daily opening level. This takes us below the 200 EMA moving average. After that, we expect an increase in bearish momentum and the formation of a new daily low. Possible lower targets are the 20200.0 and 20150.0 levels.
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