Both the US SPX 500 and US NDAQ 100 have shaped the expected residual push down and almost reached their respective key medium-term supports at 4,230 (US SPX 500 intraday low of 4,278 on 4 October) and 14,320 (NDAQ 100 intraday low of 14,382 on 4 October) as per highlighted in our earlier video (select link)
Positive elements have started to emerge in the past two days where their respective four-hour RSI oscillators have flashed bullish divergences signals at oversold levels. These observations suggest the recent downside momentum of price actions in place since 27 September have eased. Hence, both indices may have reached their respective inflection levels to kickstart another leg of medium-term (multi-week) potential impulsive up move sequences. Flip to a bullish bias; watch these key levels.
US SPX 500 – 4,230 key medium-term pivotal support for a further potential push up towards 4,500 and 4,540 next. A daily close below 4,230 invalidates bullish view for a continuation of the corrective decline towards 4,140 (200-day moving average).
US NDAQ 100 – 14,320 key medium-term pivotal support for a further potential push up towards 15,350 and 15,350 next. A daily close below 14,320 invalidates bullish view for a continuation of the corrective decline towards 14,040 (200-day moving average & former major range resistance from 15 February to 29 April 2021).
All charts are from CMC Markets.click to enlarge click to enlarge click to enlarge click to enlarge
Disclaimer: CMC Markets is an order execution-only service. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.