S&P 500 and Nasdaq: S&P 500 bounces back above 5300.0

S&P 500 chart analysis

The S&P 500 continues its successful recovery from last week’s fall to the 5256.2 level. On Monday, the index stabilised above 5300.0 and the EMA50 moving average. During this morning’s Asian trading session, the value of the index briefly retreated to 5310.0, where it gained new support. A positive consolidation has started and the S&P 500 moves up to the 5321.0 level, forming a new weekly high there. 

We expect to see further positive consolidation and growth of the index to a new high. Potential higher targets are 5330.0 and 5340.0 levels. We need a negative consolidation and pullback down to the 5300.0 level, the weekly open price for a bearish option. By falling below this line, we move to the negative side, which could drag the index to a new low. Potential lower targets are the 5290.0 and 5280.0 levels.

Nasdaq chart analysis

The Nasdaq index is on the verge of erasing the previous decline at the 18552.7 level. The pullback happened abruptly on Thursday from the 18948.9 level. We are now at 18900.0 and expect to see a continuation of the previous high. During this morning’s Asian session, the index briefly retreated to 18825.0, where it successfully gained support and started the current bullish consolidation. 

Potential higher targets are 18950.0 and 18975.0 levels. The Nasdaq would have to go back down to the 18800.0 level for a bearish option. There we test the weekly open price and the EMA50 moving average. An impulse below would break those support levels and thus signal weakness in the index. After that, we are expected to see a further pullback to a new low. Potential lower targets are 18775.0 and 18750.0 levels.

The post S&P 500 and Nasdaq: S&P 500 bounces back above 5300.0 appeared first on FinanceBrokerage.