S&P 500 and Nasdaq fell under bear pressure yesterday

S&P 500 chart analysis

A new all-time high for the S&P 500 index was formed yesterday at 5654.1. After that, the index loses momentum and initiates a bearish consolidation to support at the 5577.0 level. During this morning’s Asian session, we saw a slight bullish consolidation of up to 5595.0. Here, we encounter resistance for now, and additional pressure is exerted by the EMA 50 moving average, which is in the zone around 5600.0 levels.

This could negatively affect the S&P 500 and push it to the bearish side. Potential lower targets are 5570.0 and 5560.0 levels. Greater support in the EMA 200 moving average awaits us at the 5560.0 level. We need a positive consolidation and a return above the EMA 50 moving average and 5600.0 for a bullish option. This extends this morning’s bullish consolidation. Potential higher targets are 5610.0 and 5620.0 levels.

Nasdaq chart analysis

Nasdaq rose to 20758.4 levels yesterday. Data on American inflation influenced us to see the index retreat to the 20152.9 level. The rapid decline broke through the EMA 200 moving average support. During this morning’s Asian trading session, there were no significant changes in the trend. The index moved in the 20200.0-20250.0 range. We are waiting for the US session and the PPI report for a more concrete step on the chart.

A hold in the support zone could produce momentum below and form a new weekly low. Potential lower targets are the 20100.0 and 20000.0 levels. We need a positive consolidation and a return above 20260.0 and the EMA 200 moving average for a bullish option. With that step, we would start the recovery, and the Nasdaq would have a chance to recover from yesterday’s fall.

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