Figure 3: The NASDAQ on a daily chart
Now, the NASDAQ has reached resistance on the gap from which it bounced down. The rising trend line was broken on May 1, 2020, and the price has been below it ever since. For a stronger confirmation of the trend reversal, it would be good to wait until a lower high and a lower low being created.
is the upper part of the gap in the range of 9,360 - 9,500.
is at the level of 8 577 - 8 620.
The SP 500
The price on the SP 500 is moving in a similar way to the NASDAQ, but we can also see that it is still below moving averages SMA 100 and SMA 200, which is a strong bearish signal. The index seems to have found a certain equilibrium price and since April 9, 2020, it has been trading in the range of 2,730 - 2,970.