Support Holds As U.S. Markets Remain Resilient

Published 03/01/2022, 12:37 AM
Updated 07/09/2023, 06:31 AM

After posting late Sunday in the US, ahead of Monday trading, then seeing the state of US Futures early Monday in Asia, I thought I was going to be left with egg on my face, but support was well defined on Friday and yesterday's Wall Street action effectively confirmed these levels as working support. Of course, we can still go lower from here, but given the economic state of Russia and the war in the Ukraine, Monday's action was very tepid.

The NASDAQ is about to run into its first piece of price resistance at the 20-day MA, but it does have a 'buy' trigger in its relative performance to the S&P, not to mention a (weak) 'buy' signal in the MACD.

COMPQ Daily Chart

The S&P similarly confirmed its support level responsible for the 'bear trap.' The index closed lower, but it doesn't have the early 'buy' triggers of the MACD or relative performance against peer indices to suggest it can lead out a rally. However, it can still defend what it has.

SPX Daily Chart

The Russell 2000 (via IWM) continues to shape a double bottom with January/February swing lows, but the neckline needs to be breached. It does have the benefit of a relative performance advantage over the S&P and NASDAQ, along with 'buy' triggers in the MACD and On-Balance-Volume. Also, the closer it comes to confirming the double bottom, the sooner it will negate the measured move target around $169.

IWM Daily Chart

Remember, the news will always be bad when markets are down. But it's not a guarantee every bit of bad news will result in a market sell-off. Markets are looking a little more resilient, and with a bit of luck, Ukraine will come out of this a member of the EU one day.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.