The S&P 500 and Nasdaq continue last week’s recovery
- At the beginning of this week, the S&P 500 index received support from the EMA 200 moving average.
- The Nasdaq’s value recovered on Tuesday to the 18710.0 level.
S&P 500 chart analysis
At the beginning of this week, the S&P 500 index received support from the EMA 200 moving average. That stabilized the index, and today, we saw a new weekly high at the 5377.4 level. We remain with the EMA 200 support and expect to see a continuation to the bullish side. The index’s momentum above 5380.0 pushes us to a new weekly high. Potential higher targets are 5400.0 and 5420.0 levels.
For a bearish option, we need a negative consolidation and a drop below the 5320.0 level. Thus, the S&P 500 would drop to a new daily low and thereby confirm that it is under pressure. After that, the index should begin to retreat and look for new support at lower levels. Potential lower targets are 5300.0 and 5280.0 levels.
Nasdaq chart analysis
The Nasdaq’s value recovered on Tuesday to the 18710.0 level. Since the market opened on Monday morning, we have been supported by the EMA 200 moving average. This gives us some certainty to continue on the bullish side. The Nasdaq now has an opportunity to initiate a bullish consolidation and move to a new weekly high. Potential higher targets are 18800.0 and 18900.0 levels.
For a bearish option, the Nasdaq should step back to the 18400.0 level. With that step, we descend to a new daily low, which confirms that we are under pressure and that we could see further retreat. By falling below 18300.0, we will break the Friday low, after which we expect an increase in bearish momentum. Potential lower targets are the 18200.0 and 18100.0 levels.
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