Figure 3: The NASDAQ on a daily chart
The NASDAQ got to a significant resistance at 78.6% Fibo of the XA movement. At this level, however, one reaction has already taken place, and the bulls might be successful in the second attempt to break through the level. Above it, there is a gap that might be filled.
is at the level of 9,100 - 9,150. After breaking, the upper part of the gap in the range of 9,400 - 9,500 is the next resistance. Support 1
is at the level of 8,360 - 8,450. The price reacted here to the hidden gap from April 14, 2020.
The SP 500
The price on the SP 500 is moving in a similar way to the NASDAQ, but we can see that it is still below the strong moving averages SMA 100 and SMA 200. In addition, the moving average SMA 100 is already below the SMA 200, which is a strong bearish signal. It seems that the index has found a certain equilibrium price and since April 9, 2020, it has been trading in the range of 2,730 - 2,970.