- The S&P 500 is pulling back from the resistance area this week at 5220.0.
- The Nasdaq index fell on Wednesday to the level of 17862.8, testing the support area it was in last week.
S&P 500 chart analysis
The S&P 500 is pulling back from the resistance area this week at 5220.0. The rise in the dollar index, as well as the rise in inflation in the United States, contributed to this. Therefore, on Wednesday we saw a decline to 5128.7 levels. On Thursday, we consolidated there and recovered to the 5210.0 level. During the Asian trading session this morning, the index managed to stay above the 5195.0 level.
Then, in the EU session, downward consolidation begins and falls to the 5170.0 level. We are now under pressure to continue falling to the previous support level. Possible lower targets are 5160.0 and 5150.0 levels. We need to get back above the 5210.0 level to get a bullish option again. Thus we rise above the EMA200 moving average and the weekly opening price. If we can stay there, we will get good support for further recovery.
Nasdaq chart analysis
The Nasdaq index fell on Wednesday to the level of 17862.8, testing the support area it was in last week. Like last week, this time, we are getting support at the same level. On Thursday, we see a recovery from that area to the 18337.0 level. During the Asian session this morning, the index began to slowly decline to 18200.0. Here we meet the EMA50, and we hope to support it.
Possible downside targets are 18100.0 and 18000.0 levels if the price breaks below. For a bullish option, we need positive consolidation and moving average support. Thus, we are preparing ourselves for a new momentum wave that will move us towards the upside. We are once again looking at the 18320.0 resistance area as an obstacle to our recovery. Possible higher targets are 18360.0 and 18400.0 levels.
