S&P 500 Drops Below 5000.0 Level: Weekly Update

Last Tuesday, we saw the S&P 500 index fall to 4919.6 levels. Last Tuesday, the Nasdaq retreated to the 17475.9 support level.

S&P 500 index chart analysis

Last Tuesday, we saw the S&P 500 index fall to 4919.6 levels. The index managed to stop the fall and start a recovery from that level, climbing to the 5040.0 level on Friday. We stop there and fail to form a new high. After that, we see pullbacks and a drop to the 5000.0 level. Yesterday was pretty quiet because it was a holiday in the US, and the market was closed.

During this morning’s Asian trading session, there was a drop below the 5000.0 level and the formation of a new weekly low at the 4980.0 level. Additional pressure is created by the fact that the index fell below the EMA200 moving average. Such a picture tells us that if we do not return above the EMA200, the S&P500 will continue its retreat. Potential lower targets are 4970.0 and 4960.0 levels.

Nasdaq index chart analysis

Last Tuesday, the Nasdaq retreated to the 17475.9 support level. We get new support there and start recovery up to the 17950.0 level. We did not manage to reach the previous high at 18041.3 but stopped below, forming a lower high. This brought uncertainty to the bullish flat’s continuation, and the index’s value began to retreat. The market closed on Friday at the 17658.4 level.

Yesterday was a holiday in the US, so the movement was limited but under pressure below the EMA200 moving average. This morning’s Asian session influenced us to see a pullback to the 17550.0 level and form this week’s price low there. Potential lower targets are 17500.0 and 17450.0 levels.

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