Wall Street stumbles and stumbles. The US stock market is in danger of falling under heavy selling pressure.
The short term support levels do not seem to be holding. At the time of writing, these were under severe stress.
The sales pressure that initially seemed to evaporate somewhat, is returning in full force. The artistic image of Wall Street is fluctuating on all sides.
Most investors have trouble locating the Federal Reserve’s monetary policy. Obviously, it is very difficult to accurately estimate this policy.
On the other hand, the importance of tackling inflation is recognized. On the other hand, investors fear that too tight monetary policy will nip all economic power in the bud. High inflation with a stagnant economy is the last thing the market needs.
The critical support for the S&P 500 at 4108.37 is now under pressure. If this bottom breaks, then the hatch of the vault opens completely.
All support levels faltered
The S&P500 is only 1% higher than it Lowest point this year. The lack of ability to recover is a manifestation of the course of the last weeks.
Technically speaking, the US stock market continues to develop very shaky.
In the long term, all technical indicators and signals are in red.
- All long-term uptrends have been abandoned
- Every index on Wall Street is below the 200-day moving average
- In addition, the 200-day line for each stock indicator is skewed down
- Lower tops indicate continued selling pressure
- The lack of recovery power is increasingly evident
- Key support levels appear to be collapsing
This time I am reviewing the major US indicators again. But I’ll start with AEX, which is also not out of the woods yet.
The Dutch stock market is still weak
The AEX is making a lower top, about 750 points below the previous lows. This old support now acts as new resistance. As long as the price stays below, the technical picture looks negative.
Initial support is at 632.12 points (from February 17, 2020). Resistance is about 750.
The 200-day line of the AEX indicator (the rolling red line) is rolling lower. This indicates a deteriorating technical condition.
S&P 500 Index Formed Top Bottom
The S&P 500 continues to slide. The recent price drop evident on April 1st at around 4,639.35 points confirms the increasing selling pressure. Earlier, the uptrend had already broken.
If the S&P 500 also falls below the 4108.37 point support, the hole will be fully opened. This will provide a sell signal, after which the room will be freed up for a further drop in prices towards 3,723.21 points.
The downtrend of the 200-day line (red rolling solid line) indicates a clear weakness in technical conditions.
Nasdaq 100 puts 12967.18 support under pressure
The technical picture of the Nasdaq 100 is under serious pressure. With the support at 12,967.18 points (low of May 14, 2021) failing to hold, the bottom is slipping out of the market.
A convincing bearish breakout below 12,967.18 would provide a sell signal point, with 10,677.85 as the next target price down.
The first weakness was the breakout from the long term uptrend channel. After that, a lower top formed at 15,265.42 points (April 1 high). He cited sales pressure.
The downside reversal from the 200-day line confirms the weak technical condition.
The SOX indicator weakens and curls down
In the SOX index (which shows the price movements of the largest companies in the US semiconductor industry), the bottom has already broken about 3,200 points. Also, the uptrend has already broken. The lower top around 3633.14 points (1st Apr high) confirms selling pressure.
There is an intermediate initial support around 2,800 points, but the real support is only around 2,102.16 points (low of September 25, 2020).
The transport index can’t hold his pants
The transportation index has already weakened after the collapse of its lows in mid-2021. The upward trend in the transportation sector has also already been abandoned.
The recent lower top around 6,353.93 points (1st Apr high) confirms the new selling pressure. We only see support around 4767.36 points (Sep 25, 2020 low).
Also in the transfer indicator, the downward reversal of the 200-day line confirms the weak technical condition.
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