- Advertisement -
-0.9 C
London
Monday, November 29, 2021

Is S&P 500 Topping Or Just Consolidating?

- Advertisement -


The continues to fluctuate along the 4,700 level. So is this a topping pattern or just a flat correction before another leg up?

The S&P 500 index extended its Monday’s decline yesterday, as it fell to the daily low of 4,652.66. But it closed 0.17% higher following an intraday rebound. The market rebounded to the 4,700 level again. The broad stock market keeps trading within a mor-than-two-week-long consolidation. For now, it looks like a flat correction within an uptrend. However, it may also be a topping pattern before some more meaningful downward reversal.

The nearest important support level remains at 4,630-4,650 and the next support level is at 4,600. On the other hand, the resistance level is at 4,700-4,750. The S&P 500 continues to trade along the 4,700 level, as we can see on the daily chart (chart by courtesy of http://stockcharts.com):

S&P 500 Daily Chart.

Nasdaq Broke Below Trend Line

Let’s take a look at the chart. The technology index reached the new record high on Monday, led by the mega-cap tech stock rallies, but it reversed its intraday course, and yesterday it fell below the 16,200 level. The index broke below its short-term upward trend line, as we can see on the daily chart:

NASDAQ 100 Daily Chart.

Apple and Microsoft – a Potential Reversal

Let’s take a look at the two biggest stocks in the S&P 500 index, Apple (NASDAQ:) and Microsoft (NASDAQ:). Apple accelerated its uptrend on Monday and Microsoft slightly extended its recent advance. Both reached the record highs before reversing lower. Yesterday they were mixed, and today we may see some more short-term uncertainty.

Apple Daily Chart.
Microsoft Daily Chart.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

- Advertisement -
Latest news
- Advertisement -
Related news
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here