The NASDAQ index has gapped below the 50% midpoint of the move up from the October 2022 low, which comes in at 15146.70. Also clustered near that level are key swing highs and lows from early 2024, extending up to 15215. This zone between 15146 and 15215 now acts as resistance and would need to be broken to offer buyers renewed confidence (see green numbered circles on the chart).
Unless that resistance is breached, the focus shifts to the downside, where the next key target lies in a swing area between 14359 and 14504 (see red numbered circles).
For the S&P index, price gapped below the April 18 swing low at 4953.56, as well as below the psychologically important 5000 level. That entire zone is now resistance and must be reclaimed and held to give buyers a fighting chance.
On the downside, support comes in between 4796.57 and 4817.87. The 50% midpoint of the move up is at 4817.87, and notable swing highs from December and January sit at 4796.57. A break below this zone would further tilt the bias toward the bearish side.
This article was written by Greg Michalowski at www.forexlive.com.