Macro: Sandcastle economics
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Technical Update - SP500 and Nasdaq100 could resume bearish trend
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: US Indices S&P500 / US500cfd and Nasdaq 100 / USNAS100 cfd are still showing negative sentiment and with Friday's sell-off they could soon turn bearish. Key support and resistance levels to be observed
S&P 500 with the sell-off Friday the Index seems heavy. RSI has failed once again to break above 60 threshold. If S&P 500 closes below 4,430 it is likely to drop to test key support at around 4,328. A close below could trigger increased selling down to around 4,100 with the 200 Moving Average currently at around 4,200 giving some support
Weekly chart shows why 4,328 is such a key support, a close below will confirm down trend also on the medium-term.
For S&P 500 to resume uptrend a close above key resistance at around 4,540 is needed
US500 cfd: Key resistance at 4,540. Key support at 4,333. A break below 4,328 could fuel a sell-off down to 4,333 level.
Nasdaq 100 A close above resistance at around 15,561 will resume uptrend. However, with the sell-off Friday downtrend is likely to resume. A close below 15,138 will confirm the bearish scenario that if unfolding is likely to take Nasdaq down to key support at around 14,687.
If broken next support levels are 14,254 and 13,589, where 200 Moving Average is likely to add to the support strength.
RSI is still showing negative sentiment having failed to close above 60 threshold
On the weekly chart Nasdaq 100 is broken bearish out of its rising Wedge like pattern. A Pullback has occurred end August but it has not demolished the potential top and reversal scenario. A close above 15,932 is needed for that.A close below 14,557 a medium-term downtrend is confirmed
USNAS100 cfd. A close below 15,133 could fuel a sell-off down to key strong support at around 14,687. Resistance at around 15,525. A close above is needed for bullish trend
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