Markets have calmed down a bit, and could be poised to head higher
Markets have calmed down a bit, and could be poised to head higher
Markets have started to calm down as opposed to a few weeks ago when the markets exhibited heightened volatility. The chart(s) of the S&P 500 and Nasdaq look similar to each other. Both indexes are currently forming an inverse head and shoulders patterns, and if these trends hold strong we could rally into new highs.
The left shoulder on the S&P was formed on January 24 when the S&P 500 (symbol: SPX) hit an intraday low of 4222, then the head was formed on 2/24/22 when it hit an intraday low of 4114. Right now the index is working on its right shoulder, and if the S&P can trade up to and hold the 4640 level, we think this index is headed higher.
We think a test of its high of 4818 is possible if the breakthrough happens above the neckline of the inverse head and shoulders pattern that has formed.
Similar to the S&P 500 the Nasdaq setup its left shoulder on January 24, and the head was on February 24 when intraday trading let the Nasdaq down to 13,065. On March 14, the Nasdaq traded down to 13,020 and this level has held.
Currently the Nasdaq is working on its right shoulder and if the Nasdaq trades above 15,265 we can see significant rally in the Nasdaq. Around the 15,265 is the neckline, and a break in its neckline could cause a test of the all time high in the Nasdaq of 16,764.
