Macro: Sandcastle economics
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Technical Analyst, Saxo Bank Group
Nasdaq 100 rejected at key resistance level. Could sell-off down to around 16,549-16,276
US500 and USNAS100 CFD levels in the text below
S&P 500 was rejected at the 55 daily Moving Average and seems likely to resume its downtrend.
The strength indicator, RSI, is still showing negative sentiment, and a close back below the 40 threshold will further confirm this.
Key strong support is around 4,953. A daily close below this level is likely to lead to a sell-off down to the 4,845-4,800 area.
For S&P 500 to establish a bullish trend, a daily close above 5,146 is required.
Nasdaq 100 was rejected at the resistance around 17,808 and closed Tuesday below both the Cloud and the 100 daily Moving Average.
The strength indicator, RSI, is still showing negative sentiment, and a close back below the 40 threshold will further confirm Nasdaq’s bearish trend.
This bearish trend could take the index down to strong support around 16,963.
A daily close below this level is likely to lead to an increased sell-off down to around 16,276.
To demolish this bearish scenario, a close above 17,808 is a minimum requirement. To establish a bullish trend, a close back above the Cloud (shaded area) is needed.
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