A technical perspective on Nasdaq 100 and SP500, ahead of earnings season


The context of uncertainty (trade war, acceleration of inflation, end of cycle, risk of regulation of the technological sector) has weighed on sentiment and has shaken equity markets since the beginning of the year. Nevertheless, the US stock indexes held above their 200-day moving average (blue line) and are still upwards oriented technically.

With quarterly results starting next week, investors will refocus on fundamentals rather than media headlines, and if companies confirm the positive trend of recent quarters, stock markets could move closer to the year highs pretty quickly.

NASDAQ 100 (Daily): The 6640 level represents a point of inflection. A break above will open the way for 6800 then 7000. On the other hand a return below 6300 (on a close) would invalidate the scenario of a rebound.

S&P 500 (Daily) - a return above the 2675/2700 area will open the way for 2800, then 2870. On the other hand below 2580 (on close) would invalidate the scenario of a rebound.

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