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.
Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.
