S&P 500 and Nasdaq: S&P 500 falls below 5275.0 this morning

• We saw the S&P 500 index fall to 5191.4 on Friday evening.
• On Friday, we saw a sharp drop in the Nasdaq index to 18187.9.

S&P 500 chart analysis

Despite the initial setback, the S&P 500 index demonstrated its resilience by swiftly recovering to the 5284.0 level before the market closed on Friday evening. This positive trend continued on Monday, with a new bearish consolidation only up to the 5240.0 level. However, we are currently facing resistance at the weekly open price, leading to a loss of strength and a retreat below the EMA200 moving average.

Currently, we are at the 5250.0 level, and if the current pressure persists, we could potentially test yesterday’s low. In such a scenario, our lower targets would be the 5230.0 and 5220.0 levels. However, for a bullish option, we need to see a return above the EMA200 and the weekly open price. This would put us in a more favorable position for further progress, with potential higher targets at the 5300.0 and 5310.0 levels.

Nasdaq chart analysis

On Friday, we saw a sharp drop in the Nasdaq index to 18187.9. We were down for a short time because a quick bullish consolidation and recovery to the 18525.0 level also followed. On Monday, we saw a bullish continuation to the 18700.0 level. There we encounter new resistance and pull back below the EMA200 and 18600.0 levels. Today, we continue below the EMA200 with the daily low at 18450.0.

Potential lower targets are 18400.0 and 18350.0 levels. For a bullish option, or a strategy that anticipates a rise in the market, we need a positive consolidation and a jump in the value of the Nasdaq above the 18650.0 level. Then, we need to hold above this level to have the opportunity to continue on the bullish side. Potential higher targets are 18700.0 and 18750.0 levels, indicating the potential for further upward movement.

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