Asian stocks have seen some pressure for the past two weeks on worries over rate hike in the U.S., weakness in the commodities markets and the slowing growth in China.

Here are the technical analyses on the charts.

S&P500 chart

Two weeks ago, I mentioned that S&P500 may test the recent high of 2,135. It tested 2,133 before profit taking set in. S&P500 closed at 2,078 last Fri.

Since 5 Feb 2015, S&P500 has traded within a tight range of 2,040 – 2,135. Based on Chart 1 below, S&P500 seems to be reaching the lower end of the range. Critical support is seen at 2,040 – 2,061. ADX remains low at 14.6 which indicates a lack of trend. Thus, given the available information, S&P500 is likely to trade within the range 2,040 – 2,135 in the next two weeks. Nevertheless, a breakdown below 2,040 is ...