In this article i’m going to talk about the latest technical elements of the NASDAQ and the S&P 500. I want to perform technical analysis on the stock market today, with a view to determining whether I think it’s showing signs of recovery. Let’s take a look!

Stock market today – the NASDAQ long term picture

The first thing I like to do when considering the stock market today, is check the monthly timeframe chart of the NASDAQ index. Each candle on this chart shows us one month’s movement, spanning a long period of time:

As you can see from the monthly timeframe chart, the price recently pushed away from a long term diagonal trend line. This is a great way to get a birds eye view/idea of what’s happening with the stock market today. However, you can see the market currently on a pull back and has been for the last couple of months. I’ve been waiting to see if the price will continue to pull down or start to recover by pushing up further away from the trend line. Now that we can see the bigger picture, let’s take a look from a slightly more zoomed in perspective – the daily timeframe:

Stock market today – NASDAQ daily timeframe

Now you can see the monthly timeframe pattern on a more zoomed in basis. As you can see, the price has been pulling back towards the trendline. It’s reached another major support level (horizontally) marked in red on the chart. It’s forming a light pink candle there – currently meaning the price is higher than where it opened – although note today is not over yet!

The MACD signal and MACD lines have moved under the histogram and they are in the ‘undervalued zone’ currently. The RSI is also very low currently. This is not a guarantee that the price will recover, but it can precede many recoveries.

Notwithstanding the position of the RSI and MACD indicators, the price has not started making higher highs and higher lows on this timeframe, yet.

Note that higher highs and higher lows on the daily timeframe must be preceded by the same pattern on lower timeframes first! So let’s take a peek at the 30 minute timeframe, to get an idea of what’s happening much closer in!

30 minute timeframe – the NASDAQ

Now you can see the bounce from the horizontal red support line more closely:

The candle stick pattern noted here is a hammer – with a very long tail. This means the sellers were in control pushing the price down to the support level but the buyers stepped in and pushed the price back up, confirming that the support line is still very much valid.

In terms of what sort of trend the market is in on the 30 minute timeframe, I tend to follow the ebbs and flows of the MACD indicator to tell me where the highs and lows are. This is not how all trades analyse the markets, but this works for me – so i’m happy to share, but obviously you have no obligation to adopt my approach! Let’s break this down carefully, because it looks very choppy!

Let’s talk through what’s happening here. The market made it’s very low, low, at the horizontal support. It then made low 2 in a higher position. Low 3 was higher and low 4 was higher. However, take a look at what’s happened to low 5… it’s now lower than the previous one. This to me indicates that the market is not yet sure of where it wants to go.

Similarly look at the highs. The highs were progressing but the one being made currently is still at the same level of the previous ones. Is it now going sideways at this level? This remains to be seen. Sideways often precedes a change in direction! It’s not a guarantee that the market will go back down.

My conclusion at the moment is that the market is not clear. I’m not seeing consistent higher highs and higher lows in the movements noted above. So what now? My position is that I will wait…

Since the NASDAQ has a massive impact on the other stocks on the market including the other ones listed on the S&P 500, I have not considered that here. It is very much likely to be forming the same sort of patterns noted here but less stark/softened by the other stocks included there.

You may also find my blog articles on stock market news helpful, which i’m linking below:

Fundamental Analysis – Sophia Trades – Learn how to Trade the Stock Market

I hope you found this article on the ‘stock market today’ helpful!

Let’s generate wealth independently, together!

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You Tube:

https://www.youtube.com/channel/UC__AuhOClF8FRudbmT05OKQ

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https://www.patreon.com/sophiatrades

To watch me trade live and understand exactly how I make money using my own unique strategy in full, please visit my Patreon page here:

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Disclaimer!

Nothing on this blog should be taken as financial advice or encouragement for you to enter a trade.  You are expected to speak to a financial adviser or carry out your own due diligence before entering any positions.  Everything on this blog is made for educational purposes and to equip you with the knowledge you need to be able to make your own financial decisions.  I am not regulated by the Financial Conduct Authority.

For more great tips and advice on trading the stock market, please visit:

https://www.sophiatrades.co.uk

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

Please note any subscriptions taken via my affiliate link with Trading View may result in me earning a small commission.  However, I provide complete transparency on me using Trading View personally – I publish my success on the financial markets via my broker reports and any profits earned were done so by using my own Trading View subscription,  so I genuinely do recommend them and have been using the Trading View charts for many years.

Let’s take a look at the stock market today to see what’s happening. Are the markets recovering? Is AI tech still considered slightly overvalued? Let’s try to answer some of these questions by looking at some charts!

Stock market today – the NASDAQ / AI Tech

Let’s just jump straight into considering the NASDAQ index chart – this will give us some key information about what’s happening with stocks today. I’m considering the monthly timeframe first:

To get a discount to the chart software I use, follow the link below – i’m with Trading View:

As you can see, on the monthly timeframe, the NASDAQ has been dancing around the new highs it reached recently after a strong push up from the long diagonal trend line which has been present on the chart since mid 2023. It looks like it’s taken a bit of a breather in the last few weeks. However, note when you zoom in, that the two purple candles which have formed in the last two months, have got long tails. These types of candles can happen where, initially, sellers push the price down, but then confidence resumes in the market, and the buyers step in and push it up again to the previous level. These candles are called hammer candlestick patterns. You can learn about them here:

Japanese Candlesticks – Sophia Trades – Learn how to Trade the Stock Market

OK, so we can see what’s happening on the monthly timeframe chart… let’s take a look at the daily timeframe:

As you can see, the monthly timeframe on the NASDAQ has been extremely choppy, indeed, in terms of the stock market today. It’s been bouncing around the same level since around the beginning of June…. However, note that the MACD and signal lines had moved below the zero level of the histogram and the MACD and signal lines could be due for a cross over to the upside. This is not a guarantee that the price will start recovering, however. The price most recently pushed again away from the horizontal support level you can see above at around 29,542. So prices are holding firm and pushing up slightly from the key support area – meaning they look like they are holding firm, for now.

It’s important to consider the S&P 500 when considering the stock market today, to get more of a complete picture of what’s going on… Let’s take a look at the S&P 500 Chart and especially how this has been affected by the volatility on the NASDAQ:

S&P 500 – daily timeframe

As you can see, it’s following a very similar shape to the shape of the NASDAQ, and this is no surprise, since the NASDAQ contains very large components of the S&P 500 – like Apple, Microsoft, Google etc. So the NASDAQ will continue to have a significant influence on the movements of the S&P 500 Index chart. A key difference to note here is that the MACD and Signal lines have already crossed to the upside on this one, but as you can see, the move was not strong – it’s quite weak… this is probably due to it being held down by the weight of the NASDAQ which hasn’t yet recovered to previous highs. For many traders, this will be a period of waiting… if you are a day trader, it’s possible you could make money in these types of markets, but my own personal trading style is to wait until the markets are pushing up… so i’m going to apply my discipline, and do just that.

I hope you found this article on the stock market today, helpful!

Let’s generate wealth independently, together!

Socials:

You Tube:

https://www.youtube.com/channel/UC__AuhOClF8FRudbmT05OKQ

Patreon:

https://www.patreon.com/sophiatrades

To watch me trade live and understand exactly how I make money using my own unique strategy in full, please visit my Patreon page here:

https://www.patreon.com/sophiatrades

Disclaimer!

Nothing on this blog should be taken as financial advice or encouragement for you to enter a trade.  You are expected to speak to a financial adviser or carry out your own due diligence before entering any positions.  Everything on this blog is made for educational purposes and to equip you with the knowledge you need to be able to make your own financial decisions.  I am not regulated by the Financial Conduct Authority.

For more great tips and advice on trading the stock market, please visit:

https://www.sophiatrades.co.uk

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

Please note any subscriptions taken via my affiliate link with Trading View may result in me earning a small commission.  However, I provide complete transparency on me using Trading View personally – I publish my success on the financial markets via my broker reports and any profits earned were done so by using my own Trading View subscription,  so I genuinely do recommend them and have been using the Trading View charts for many years.