Dow Jones Technical Outlook:
Dow sells off from top-side trend-line of long-term sampleRoom to go earlier than trend-line help is met
See how the quarterly forecast has performed out what it might imply for the big-picture – Q2 Fairness Markets Forecast.
Dow sells off from top-side trend-line of long-term sample
The Dow was treading water previous to the FOMC on Wednesday, however with a 25-bps minimize already priced in and Fed language missing a extra accommodative tone the market bought off. Yesterday, the draw back was furthered together with extra Trump/Commerce Struggle headlines.
The Dow coming off the place it did isn’t a shock, although, given the top-side trend-line from the Jan 2018 excessive each it and the S&P 500 had been struggling to beat. The momentum of the down-move has been sturdy and favors much more weak spot.
Tactically talking, a smallish bounce/consolidation could be perfect for establishing continuation-style trades, however maybe momentum might be too sturdy for that to unfold. The preliminary goal on extra weak spot is the trend-line rising up from the December low.
Will probably be an fascinating spot to see if patrons can present up, or whether or not a check of the 200-day is the following goal available on the market’s thoughts. For now, sitting tight till subsequent week the place we are going to get a possibility to see how the market desires to deal with this primary bout of promoting from file ranges (and resistance).
Lengthy-term, we’ve huge Reverse Symmetrical Triangles (RSTs) (also referred to as Megaphones) in each the Dow and S&P 500, that if full-on bearish forces come to fruition imply the market might be arrange for a unstable the rest of the yr. Excellent news for merchants, dangerous information for buyers.
Take a look at the IG Consumer Sentiment web page to see how retail merchants are positioned and what it might doubtlessly imply for varied currencies and markets transferring ahead.
Dow Jones Every day Chart (down-move set to proceed)
Dow Jones Chart by Tradingview
Dow Jones Weekly Chart (RST/Megaphone)
S&P 500 Weekly Chart (RST/Megaphone)
S&P 500 Chart by Tradingview
To be taught extra about U.S. indices, take a look at “The Distinction between Dow, Nasdaq, and S&P 500: Main Info & Alternatives.” You may be a part of me each Wednesday at 10 GMT for reside evaluation on fairness indices and commodities, and for the remaining roster of reside occasions, take a look at the webinar calendar.
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—Written by Paul Robinson, Market Analyst
You may comply with Paul on Twitter at @PaulRobinsonFX