Nasdaq, Dow and S&P 500 Test Support as Rates Climb

NASDAQ 100 Technical Analysis

The Nasdaq 100 has taken a bit of a beating overnight as we are going to see New York wake up to the Nasdaq 100 being under the 50-day EMA again. That being said, we are still in consolidation, and while it does look a little bit scary to wake up to this, the reality is that there is quite a bit of support underneath. Interest rates are rising in America and that’s part of the problem. We’ll see what the Americans do with the bond market. That will be the big tell here, but right now, this is a market that just looks like it’s grinding back and forth.

Dow Jones 30 Technical Analysis

The Dow Jones 30 finds itself testing the 50-day EMA at the most recent swing low. We’ll see if that holds. The market is still very much in an uptrend that has not changed by any stretch of the imagination. So really at this point in time, I still look for buying opportunities, but that doesn’t necessarily mean that I’m willing to jump in right away at the open. I think we need to see a little bit of a recovery to start thinking along those lines. Longer-term investors won’t be bothered at all.

S&P 500 Technical Analysis

The S&P 500 finds itself on the back foot as well as traders continue to bounce around after the breakout. The 7,600 level is an area that a lot of people will be watching, as it was a major resistance barrier previously, and then we broke out of it. Now the question is, will it hold, especially now that the 50-day EMA is sitting right there as well? Overall, this is a market that continues to be bullish despite the fact that the last couple of days haven’t felt good. And the reality is that overall, the chart goes from the lower left to the upper right, and at the end of the day, that’s all that matters.

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