Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
S&P 500 and Nasdaq 100 Technical Analysis: Looking Lower Still

S&P 500 and Nasdaq 100 Technical Analysis: Looking Lower Still

Paul Robinson, Strategist

U.S. Indices Technical Highlights:

  • S&P 500 on the verge of getting separation from March trend-line
  • Nasdaq 100 below March trend-line, triggering H&S pattern
Advertisement

S&P 500 looking to break March trend-line

The S&P 500 flirted with a break of the March trend-line on Friday, but held on by a very marginal amount. However, with the past couple of days we are seeing the trend-line come under real pressure again with price sneaking below.

To confirm a break, I’m looking for a break below the Friday low at 3789. To really validate the break a daily close beneath the Friday candle low is ideal. This will also have the Reverse Symmetrical Triangle (RST) pattern in full-swing, a development that has been taking some time to unravel but looks poised to gain momentum.

On a confirmed break the 3694 low from late Jan will be viewed as the next targeted objective. Looking at the broader move off the March 2020 low, a more sizable correction looks to be in order.

This could very well have the rising 200-day in play at some point relatively soon; the line is at 3462 and rising. It would be a nearly 10% decline from here, but again given the magnitude of the rise in less than a year’s time, it would be reasonable to see even if it is only a bull market correction.

S&P 500 Daily Chart (flirting with March trend-line break)

S&P 500 daily chart

S&P 500 Chart by TradingView

The Nasdaq 100 is clearly below the March trend-line as growth tech stocks lead the way lower. A five week head-and-shoulders (H&S) pattern is triggering with yesterday’s close coming just under the neckline and recent low at 12758.

The size of the pattern points to a nearly 1100 point move lower from here, which happens to line up with the current level of the 200-day MA at 11641. A minor level to watch along the way is the September high at 12439, but shouldn’t be too much of a support level given other developments.

To negate the H&S pattern break, a move above 13312 (right shoulder peak) will need to develop. For now, continuing to roll with a bearish outlook.

Nasdaq 100 Daily Chart (H&S pattern)

NDX daily chart

Nasdaq 100 Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES