Stock markets in Europe are closed today in connection with the Easter Monday celebrations. However, trading in America will start at half past three this afternoon, which is why I am taking a quick look at the American indices today.
I look at the long-term technical picture of the Nasdaq Composite and the S&P 500 index. Both indices have been moving in a strong upward trend for years and have not yet shown any signs of fatigue.
After the strong start to this year, with an average gain of 10% in the first quarter, the stock markets appear to be preparing for a bigger rise in the rest of the year, with the potential to further set records.
Nasdaq Composite index
The broad American technology index, which in addition to the pure tech funds also includes all other shares listed on the Nasdaq exchange, has on balance set its sights upward since the beginning of 2009.
The index has risen approximately 1,200% in fifteen years, making it one of the best performing indices of the past decade. This bull market is still intact despite the sharp decline in 2022.
At the beginning of last year, the Nasdaq Composite rebounded from the bottom of the rising trend channel and the index turned convincingly higher again. The barrier of the end of 2021 summit is currently being broken, which could give new impetus to the rising phase.
After a clear breakthrough, room becomes available for a larger increase. The next target point is calculated at 20,000 points.
S&P 500 index
The S&P 500 is considered one of the most representative benchmarks for the U.S. stock market and is often used by investors and financial professionals to gauge the performance of the broader market. The index is made up of companies from various sectors of the U.S. economy, including technology, healthcare, finance, consumer goods and energy.
The S&P 500 index has also been trending upward since 2009. Due to the heavy weighting of the large tech funds in the index, the price development is very similar to that of the Nasdaq: the S&P 500 has been equally well cushioned at the bottom of the rising trend channel and has turned upward again in the past year. However, this index has recently already clearly broken above the resistance of the last top. This has resumed the upward trend.
The S&P 500 can continue its upward trajectory towards the calculated price target of 6,000 points. Any correction will at best be absorbed above the previous top around 4,800 points. A retest of this level can provide a new entry point.
