NASDAQ set new record high at 4552 on 3rd Sept after breaking above 4479 and 4512 but failed to accumulate with bullish momentum in that zone and started falling on a consecutive note for three days - breaking below the resistance turned support 4512 while currently hovering below the same market price. Investors and mainstream media are citing Delta, stumbling economic growth and inflation as possible problems, but really there is nothing new here over the last few months. Economies are reopening and recovering, but the graph is not linear and some hiccups will be met along the way. Delta is another problem, but vaccines appear to offer the best way out of this and economies look set to avoid further lockdowns.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

On the other hand, CNN came out with the news suggesting further hardships for the Democratic party-backed stimulus as it reaches the House. The news said, “House Republicans could face increased pressure to vote against a bipartisan infrastructure package when they return to Washington later this month. On the technical side, we are keeping exponential moving average 50 in regards at 4441 for SP500 to make a bearish retrace and then as we a get a hawkish closing above the aforementioned level in four hourly time frame - this would be our confirmation to execute our buying entries. Secondly on a short and temporary note if SP500 breaks below 4491 - this would lead the indice towards 4441 and further a bearish impulsive closing would target 4372. 

SP500

Sep 10 2021