- A new all-time high for the S&P 500 was formed on Wednesday at the level of 5797.8
- On Thursday we saw the Nasdaq index jump to 20325.5, a new October high.
S&P 500 graphical analysis
A new all-time high for the S&P 500 was formed on Wednesday at the level of 5797.8. After that, the index enters sideways consolidation in the range 5765.0-5795.0. Today's outlook is slightly bearish because we are retreating to the upper areas. We are currently at 5775.0 and testing the 50 EMA along with the lower level of this sideways range. If the support is not enough, the S&P 500 will be forced to retreat to a new daily low.
Possible lower targets are the $5760.0 and $5750.0 levels. If we get support from the 50 EMA moving average, we expect to see the start of a bullish consolidation and return to the daily opening level. The S&P 500 will have enough momentum to rally. New support would be ideal to continue towards a new all-time high. The highest potential targets are 5800.0 and 5810.0.
Nasdaq Chart Analysis
On Thursday we saw the Nasdaq index jump to 20325.5, a new October high. The index loses momentum at that level and moves to the 20200.0 support level. During the Asian session this morning, the pressure on the index intensified around the 20300.0 area and we saw a decline from the 20180.0 level. We have fallen below the 50 EMA and now there is additional pressure that could strengthen the bearish momentum.
Possible lower targets are the 20100.0 and 20000.0 levels. The Nasdaq needs to stay above the weekly opening level until the end of the day because that would leave it on the bullish side. If we manage to get the support of the 50 EMA at 20200.0, the index could start a bullish consolidation. After that, we will see a return above the daily opening level and a test of the weekly high. The highest potential targets are the 20400.0 and 20500.0 levels.
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