Market Update: Technical Levels to Watch in S&P 500 and Nasdaq 100
Although the markets have gotten off to a good start in 2013, consolidation and rotation may be in play.
S&P 500 Daily Chart
The index has broken out of a mini flag and is threatening a move above the September highs. Two technical levels of interest are open gaps at 1478 and 1497; these could act as magnets near-term if the market follows through higher. However, if the market requires more time to consolidate gains (or decides to chop higher like it did this past summer), the index has room down to its uptrend line. Note that the 50-day moving average has turned higher, which is positive.
Nasdaq 100 Weekly Chart
The Nasdaq 100 (INDEXNASDAQ:NDX) is still well off its highs, thanks in large part to Apple's (NASDAQ:AAPL) underperformance. I am focusing on 2800 as an important level of interest near-term for the index. The technical level represents a measured A-B-C move higher and also sits in and around the .764 retracement level. A move above 2800 would be bullish.
Trade safe, trade disciplined.
Editor's Note: Andrew Nyquist is an independent investor based in the Minneapolis area. This article originally appeared on his investing and economics site, See It Market.
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