Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Technical Analyst, Saxo Bank Group
S&P 500 is in a short term down trend. However, RSI still above 40 threshold i.e. not bearish sentiment. However, if S&P 500 closes below 4,381 we are likely to see RSI closes below 40 which is likely to fuel further sell-offs towards support area 4,300-4,252.
Resistance around 4,500 i.e. 200 SMA. If S&P500 closes above 200 SMA Index will close the gap from 11th April. Strong resistance at 4,525.
US500 cfd/future is pointing to lower opening later today. If it trades below low from yesterday at 4,360 selling pressure is likely to intensify. Some support at 4,328 and 4,262.
Nasdaq 100 Buyers tried to lift the Index from the opening 14th April but sellers took control forming a bearish engulfing like candle engulfing previous three days. Selling wasn’t followed through yesterday but short term trend is down although not yet confirmed on the RSI still being above 40 threshold. A downtrend that could test 13K strong support. Minor support around 13,500
To neutralize the short term down trend a close above 14,342 is needed.
USNAS100cfd/Future is testing support at 13,830. Another break below is likely to fuel a sell off down March lows.
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