Wall Street stumbles and falters. The US stock market is in danger of falling under the intense selling pressure.
The short-term support levels do not appear to be holding up. At the time of writing, these are under serious pressure.
Wall Street
The sales pressure that at first seemed to evaporate somewhat, is coming back in full force. Wall Street’s technical picture is wavering on all sides.
Most investors have trouble positioning the Federal Reserve’s monetary policy. It is apparently very difficult to estimate this policy accurately.
On the one hand, the importance of tackling inflation is recognised. On the other hand, investors fear that a monetary policy that is too tight will nip all economic power in the bud. And high inflation with a stagnating economy is the last thing the market needs.
Crucial support for the S&P 500 index at 4,108.37 is now under pressure. If this bottom breaks, the hatch to the cellar opens completely.
All levels of support falter
The S&P500 is only 1% above its lowest point this year. The lack of recovery capacity is illustrative of the course in recent weeks.
Technically, the US stock market continues to develop extremely fragile.
In the long term, all technical indicators and signals are red.
- All long-term uptrends are abandoned
- Every Wall Street Index Is Below the 200-Day Moving Average
- In addition, the 200-day line of every stock index curls downward
- Lower tops signal continued selling pressure
- Lack of recovery power is increasingly manifest
- Major support levels appear to be breaking down
This time I’m reviewing the major US indices again. But I’ll start with the AEX, which is also not out of the woods yet.
Dutch stock market remains weak
The AEX index forms a lower top below the former bottoms around 750 points. This old support now acts as a new resistance. As long as the price remains below, the technical picture looks negative.
There is an initial support at 632.12 points (from February 17, 2020). The resistance is around 750.
The 200-day line of the AEX index (red rolling line) is curling downward. This indicates a deterioration in the technical condition.
S&P 500 index forms lower top
The S&P 500 index continues to slide. The clear recent lower price top of April 1 at around 4,639.35 points confirms increasing selling pressure. Earlier, the uptrend had already broken.
If the S&P 500 index also falls below the support of 4,108.37 points, the hatch will open completely. That would provide a sell signal, after which room is freed up for a further price decline towards 3,723.21 points.
The downward trend of the 200-day line (red rolling solid line) signals a clear weakening in technical conditions.
Nasdaq 100 index puts support 12,967.18 under pressure
The technical picture of the Nasdaq 100 index is under serious pressure. With the support of 12,967.18 points (the May 14, 2021 bottom) failing to hold, the bottom is slipping out of the market.
A convincing downward break below 12,967.18 points would provide a sell signal, with 10,677.85 as the next price target downward.
The first weakening was the breakout from the long-term rising trend channel. After that, a lower top was formed at 15,265.42 points (the top of April 1). It pointed to sales pressure.
The curl down from the 200-day line confirms the weakened technical condition.
SOX index further weakens and curls downward
In the SOX index (which shows the price movements of the largest companies in the American semiconductor industry), the bottom had already broken around 3,200 points. Also, the rising trend had already broken. The lower top around 3,633.14 points (the top of April 1) confirms selling pressure.
There is an initial intermediate support around 2,800 points, but the real support is only around 2,102.16 points (the bottom of September 25, 2020).
Transportation index can’t hold up its pants
The Transportation index had already weakened after the mid-2021 lows collapsed. The upward trend had already been abandoned in the transport sector.
The recent lower top around 6,353.93 points (the top of April 1) confirms the new selling pressure. We don’t see support until around 4,767.36 points (the bottom of September 25, 2020).
Also in the Transportation index, the downward curl of the 200-day line confirms the weak technical condition.
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