The S&P 500 and Nasdaq retreated to new lows yesterday

S&P 500 chart analysis

On Tuesday, the S&P 500 failed to hold above 5750.0, and we saw a breakout below. The index fell to the 5680.0 level, and we saw the formation of a new weekly low. During this morning’s Asian trading session, the movement took place in the 5685.0-5710.0 range. We have additional pressure in the EMA 200 moving average, which is now on the bearish side. This could lead to an increase in bearish momentum. The S&P 500 will then have to make a move below to a new lower low.

Potential lower targets are 5680.0 and 5660.0 levels. For a bullish option, we need a positive consolidation, a jump above 5720.0, and the EMA 200 moving average. With the new support, optimism for further index recovery will increase. The impulse above the 5730.0 level brings us back above the weekly open level. Potential higher targets are 5740.0 and 5760.0 levels.

Nasdaq chart analysis

On Tuesday, the Nasdaq failed to hold above 20000.0 and broke below. Strong bearish impulses lowered the index to form a new weekly low at 19614.1. The EMA 200 market average is now bearish for us and will only increase the pressure on the Nasdaq. During this morning’s Asian session, the movement took place in the 19675.0-19800.0 range. For a bearish option, we need negative consolidation and a visit to yesterday’s low.

With that step, the pressure on that level will increase, and we could see the formation of a new low. Potential lower targets are 19600.0 and 19500.0 levels. For a bullish option, we need a positive consolidation of the Nasdaq above the EMA 200 and 19900.0. If the index does something like that, it will be in a good position to initiate a further bullish recovery. Potential higher targets are 20000.0 and 20100.0 levels.

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