(Technical Analysis) FTSE 100, S&P 500, and NASDAQ 100 Recovering After US NFP-Induced Sell-Off

Following last week’s sharp declines, the FTSE 100, S&P 500, and NASDAQ 100 are starting to recover some of their losses, marking their worst weekly performance in 18 months.

FTSE 100 Rebounds

After six consecutive days of losses, the FTSE 100 hit a low of 8,153 on Friday. However, Monday saw a bounce as the index was supported by a partial recovery in Asian stock markets. Despite a weak start to the week, these markets managed to recoup some of last week’s sharp declines, although they still ended the day in negative territory.

The FTSE 100 rebounded from its Friday low of 8,153, rising towards its 55-day moving average of 8,236, which could serve as the first resistance point. If last Thursday’s high of 8,285 is not breached, downward pressure may persist. Minor support sits just above Friday’s low at 8,205, which was Wednesday’s trough.

S&P 500 Experiences Worst Weekly Drop in 18 Months

The S&P 500 suffered a significant drop of around 4.5% from its early September peak of 5,655, marking its steepest weekly decline in 18 months. This sharp fall signals potential further declines ahead.

Resistance may be found between the late June and early July lows around 5,444, as well as at the 55-day simple moving average (SMA) near 5,508. A break below Friday’s low of 5,385 could pave the way for further declines towards the late May low of 5,192.

NASDAQ 100 Attempts to Stabilise

The NASDAQ 100’s near 8% decline from its late August high of 19,938 has shown signs of slowing, with the index finding support just above its 200-day SMA at 18,308.

Minor resistance is located at Tuesday’s low of 18,777. For any short-term bullish sentiment to develop, the index would need to rise and close above Thursday’s high of 19,108. A failure to hold the 18,308 level and the 200-day SMA would bring the August low of 17,244 back into focus.