Market Analysis Summary: Nasdaq and S&P Indices

In a recent analysis by Greg Michalowski, it was reported that both the Nasdaq and S&P indices have continued their downward trend, breaking below the lows established in the previous Friday's trading session. This development indicates a stronger bearish bias in the market.

S&P Index Analysis

The S&P index has notably broken below the critical level of 6477.16. This breach suggests that sellers are firmly in control, with the next downside target identified at 6346.89. Should the index fall below this level, traders will likely turn their attention to the August swing low at 6212.69, followed by the 38.2% retracement level at 6174. A decline to this retracement level would represent an approximate -11.76% drop from the all-time high reached in late January.

NASDAQ Index Analysis

Similarly, the Nasdaq index has dipped below 21522.75, also breaking last Friday's low. Maintaining a position below this level keeps the bearish sentiment intact, with the next target being a swing area between 20931 and 21033. If the index falls below this zone, the next significant level to watch is the 38.2% retracement of the upward movement from the April 2025 low, which stands at 20491.80. A move to this level would indicate a decline of around -14% from the January 2026 high.

Key Takeaways

The essential strategy moving forward is straightforward: if the indices remain below the recently broken support levels, sellers will continue to dominate the market, with clear downside targets in sight. Conversely, if the indices manage to move back above these levels, it would signal a potential loss of momentum in the downward trend.

For a more detailed explanation of these levels and their implications, a video accompanying the analysis provides further insights into the defined bias, risk, and targets for traders.