S&P 500 and Nasdaq Technical analysis: stocks struggled for direction Friday with the Dow Jones finishing lower. The S&P 500 and the Nasdaq closing slightly higher.
5 December, AtoZForex – The surged 0.87 points to 2,191.95 levels for a weekly decline of 1%. Defensive sectors such as real estate, utilities, and consumer staples were among the considerable outperformers of the day. The S&P real-estate sector climbed 1.2%. The Nasdaq Composite Index climbed up 4.55 points, or 0.1%, at 5,255.65 levels, for a weekly decline of 2.7%, its worst since the one before the Nov. 8 election.
S&P 500 Technical analysis
The S&P 500 had a back-and-forth type of session on Friday as the market digested the employment numbers. With an addition of 178,000 jobs during the month of November, the announcement was essentially right at the time. The S&P 500 formed a neutral candle, as there wasn’t really much to take from it. The S&P 500 is in the support area and expect to see more buyers. The 2180 level will continue to offer support, thus a bullish behavior might be seen in earlier sessions. The S&P 500 may reach an eventually new high. Investors and traders should not sell the stocks even did break down below the 2180 handle.
This should give a bullish movement, but a downward breakthrough of 2190 levels implies a negative signal. RSI is overbought. This shows that the momentum of the index is very strong and that the price may well increase further in the short term. The index is overall seen as technically positive for the medium-long term.
Nasdaq Technical analysis
The NASDAQ 100 had a choppy session as well, essentially ending up almost unchanged. If NASDAQ 100 break the top of the candle, then the market will rebound and reach towards the 4800 level. A break down below the bottom will more than likely be a retest of the 4700 level, and then possibly even the 4650 level. This is a bit of a laggard when it comes to the US indices at the moment, so traders might see a massive bullish move. The S&P 500 and the Dow Jones 30 will both continue to outperform this index due to its reliance on foreign sales.
NASDAQ is within a rising trend, which indicates a continued movement. The index has support at 5160 points. The index is seemed as technically positive for the medium-long term.
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