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THE TECHNICAL TAKE

  • Writer: Marcus Nikos
    Marcus Nikos
  • Mar 3
  • 2 min read

  • The S&P, Nasdaq, Dow, and Russell all moved sharply lower on Thursday, closing near their session lows. As price moved lower, all indices formed new overhead resistance ranges and finished the session either at or near their respective support levels. Momentum readings are beginning to diverge from price, holding within their support ranges as price makes new lows. While further price confirmation is needed, this could signal a potential short-term bottom. However, with short-term trends still lower and aligned with mid-term trends, resistance is likely to remain in control, limiting rebounds from support until a trend reversal takes place.

  • The Volatility Index (VIX) finished Thursday's session strong, closing near its session highs and above its initial downside support range from 18.00-17.30. If price moves back into this range and breaks below 17.30, it will likely move toward the 15.30-14.55 range below. Continued buying pressure in the VIX will likely keep equities under pressure, while a prolonged consolidation or break below its downside support ranges could lead to strength in equities.

Key Technical Levels to Watch

S&P 500 Index

  • Resistance: the S&P finished Thursday's session sharply lower, forming a new overhead resistance zone from 5980-5940 as it moved down. If price moves back into this range and breaks above 5980, it will likely test the 6045-6010 range just above.

  • Support: as price moved lower, it broke through its initial downside support range and closed the session just above the level below from 5845-5805. If price continues lower and breaks below 5805, it will likely test the 5785-5750 range below.

  • RSI: is diverging from price action, holding within its support range while price continues to make new lows.

  • Trend: the short-term trend has shifted lower, aligning with the mid-term trend.


Nasdaq 100 Index

  • Resistance: similar to the S&P, the Nasdaq had a sharp move lower on Thursday, forming two new pockets of overhead resistance. The first level is from 21130-20950, followed by 21350-21250 slightly above.

  • Support: as price moved lower, it broke through its initial downside support range and closed the session just above the level below from 20515-20315. If price continues lower and breaks below 20315, it will likely test the 20050-19900 range below.

  • RSI: is diverging from price action, holding within its support range while price continues to make new lows.

  • Trend: the short-term trend has shifted lower, aligning with the mid-term trend.


Dow Jones Industrial Average

  • Resistance: similar to the other equity indices, the Dow moved lower on Thursday, forming a new overhead resistance zone from 43880-43600. If price moves back into this range and breaks above 43880, it will likely test the 44636-44410 range above.

  • Support: as price moved lower, it closed just above its initial support range from 43275-43080. If price continues lower and breaks below 43080, it will likely head toward the 42275-41925 range below.

  • RSI: is diverging from price action, holding within its support range while price makes new lows.

  • Trend: the short-term trend has shifted lower, aligning with the mid-term trend.



 
 
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