Market News

Record Highs Tested: S&P 500 and Nasdaq 100 Overbought

S&P 500 Nasdaq 100 overbought

US Equities face Q1 uncertainty as S&P 500 and Nasdaq 100 reach overbought levels; key support and resistance levels analyzed.

In the first quarter of 2023, US equities, particularly the S&P 500 and Nasdaq 100, face a challenging landscape as technical indicators suggest overbought conditions. The S&P 500 has seen a remarkable climb since November, flirting with the January 2022 highs above the 4800 mark. The recent surge aligns with a dovish stance on rate cuts, adding to the positive momentum already experienced earlier in the year.

Record Highs Tested: S&P 500 and Nasdaq 100 Overbought

Technical analysts note the challenge in reading the current situation, with immediate resistance observed around the 4817 mark, the previous high. If the market breaches this barrier, predicting becomes complicated due to the absence of historical price action, and the psychological level of 5000 is likely to present a significant hurdle. In the event of a retracement, support levels are identified at 4639 and further down at the 4600 area, with additional levels listed for potential downside scenarios.

S&P 500 Key Levels

Support Levels: 4600, 4435 (20-day MA), 4288 (50-day MA), 4172 (100-day MA)

Resistance Levels: 4817, 5000

Turning to the Nasdaq 100, the technical outlook is even more challenging due to uncharted territory and recent record highs. Anticipating resistance levels is complicated by the absence of historical price action, with psychological levels such as 17000 likely to act as a significant obstacle, possibly triggering a retracement. During a downturn, analysts identify the previous swing high at 15960 as the first key support area, with additional support levels ranging between 15950 and 15000.

Nasdaq 100 Key Levels

Support Levels: 15950, 15328, 15000, 14750

Resistance Levels: 17000, 17500, 18000, 18500

As US equities navigate these uncertain waters, investors and analysts will closely monitor these key levels to gain insights into potential market movements and the sustainability of the current bullish trends.

Stay Updated with the Latest Market News. Visit our YouTube Channel for the Latest Forex Analysis.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Fidelcrest video review

Play Video

Related Articles

Euro Weighed Down as EU Inflation Falls Short of Predictions

Euro Area core inflation falls for the 7th straight month, missing forecasts,...

Yen and Euro in Focus: Wage Negotiations, ECB Meetings

Japanese yen falters as USD/JPY retreats ahead of wage negotiations; EUR/JPY finds...

Dollar Reaction to Inflation Figures and Unemployment Claims

Recent U.S. inflation and unemployment data led to mixed dollar movement, with...

Aussie Dollar Up on Retail Sales, Japan Sees Inflation Surprise

Aussie retail sales disappoint, Japan inflation jumps. Currencies & commodities face data,...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Euro Down EU Inflation
Market News

Euro Weighed Down as EU Inflation Falls Short of Predictions

Euro Area core inflation falls for the 7th straight month, missing forecasts, while EUR/USD tests critical level at 1.0800.

Yen Wage Negotiations ECB Meetings
Market News

Yen and Euro in Focus: Wage Negotiations, ECB Meetings

Japanese yen falters as USD/JPY retreats ahead of wage negotiations; EUR/JPY finds support before ECB meeting next week.

Copyright © 2023 Forex Prop News. All Rights Reserved.