We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • $USDCAD dives to lowest level since March 15 on USD weakness https://t.co/8abAuksdMo
  • #Equities: US futures on the front-foot with market participants returning from their elongated break, which in turn sees the S&P 500 pierce the psychological 3000. Get your #equities market update from @JMcQueenFX here: https://t.co/7O447VkToZ https://t.co/TyXEaPVnbb
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/webinars/1338844901231735299
  • it's time for the webinar, starting right now https://www.dailyfx.com/webinars/1338844901231735299 https://t.co/gLQFjotDmG
  • Senate Majority Leader McConnell says drop in revenue for States a concern, but national debt is also concerning- BBG
  • LIVE IN 5 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/webinars/1338844901231735299
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.52%, while traders in US 500 are at opposite extremes with 75.73%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tkFbZhU9DE
  • Heads Up:🇺🇸 Fed Kashkari Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-26
  • LIVE IN 15 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/webinars/1338844901231735299
  • Heads Up:🇷🇺 Unemployment Rate due at 17:00 GMT (15min) Expected: 5.5% Previous: 4.7% https://www.dailyfx.com/economic-calendar#2020-05-26
Dow, S&P 500, Nasdaq 100 Pop to Fresh Three-Week-Highs

Dow, S&P 500, Nasdaq 100 Pop to Fresh Three-Week-Highs

2020-04-06 21:37:00
James Stanley, Strategist
Share:

Dow, S&P 500, Nasdaq 100 Price Analysis

  • US equities popped-higher today, with a 7% gain in the S&P 500 and a 7.7% move in the Dow.
  • At the source of the move was hope that there may be a slowing in the growth rates of the novel coronavirus in hotspots in Europe and the United States.
  • Last month brought a brutal rally into the equation; but this was met by some significant economic drivers out of both Congress and the Fed.

US Stocks Rise as Hope Populates the Horizon

After a very pessimistic backdrop engulfed the economic world in the month of March, a bit of hope has populated the horizon around the April open. US equities put in a big day on Wall Street, virtually speaking, as much of Wall Street is working from home.

The Dow Jones Industrial Average was up by 7.73% while the S&P 500 was up by 7.03%. The Nasdaq 100 also had a big day, pushing above the 8k marker as prices in all three indices crafted fresh three-week-highs.

On the driver side of the matter – hope permeates the backdrop as the epicenter of the novel coronavirus, in New York City, has started to see some evidence of new cases leveling out. This provides hope that the city may soon be nearing or, may have already crossed an apex in the ordeal around the global pandemic that’s caused shutdowns and stay-at-home orders across the United States. While this recent positivity in the data doesn’t necessarily indicate that the saga is yet over, it does provide some light at the end of a tunnel that until today has been very, very dark.

Starts in:
Live now:
Jun 02
( 17:06 GMT )
James Stanley's Tuesday Webinar
Trading Price Action
Register for webinar
Join now
Webinar has ended

In the S&P 500, price action jumped above a huge level at 2643, which is the 38.2% retracement of the February-March sell-off. This price had twice rebuked bulls in the two weeks prior. Also encouraging – the index held support fairly well around the 23.6% retracement of that same major move last week, helping to cauterize some higher-low support after an aggressive sell-off pushed the S&P 500 from fresh all-time-highs in late-February to fresh three-year-lows in mid-March.

S&P 500 Hourly Price Chart

SPX SPY ES SP500

Chart prepared by James Stanley; SPX500 on Tradingview

Dow Jones Crosses Key Confluent Zone

It was a similarly strong day in the Dow with prices pushing up to fresh three-week-highs. As discussed previously, the Dow had taken a deeper turn with this recent round of risk aversion, and even into this week the index had held resistance below a bearish trend-line connecting the swing-highs over the past few weeks. But today’s bullish move saw the Dow take out a key area of confluent Fibonacci levels, running from 22420-22561.

Building Confidence in Trading
Building Confidence in Trading
Recommended by James Stanley
Building Confidence in Trading
Get My Guide

Dow Jones Hourly Price Chart

Dow Jones Hourly Price Chart

Chart prepared by James Stanley; Dow Jones on Tradingview

Nasdaq 100 Blasts Off, Crosses 8K Marker

As looked at in previous webinars, the Nasdaq 100 held up a bit better than both the S&P 500 and the Dow in this recent round of risk aversion. And with this recent bullish move, the index has crossed the 8k marker as a pronounced breakout has shown on short-term charts.

Nasdaq 100 Hourly Price Chart

Nasdaq100 Hourly Price Chart

Chart prepared by James Stanley; Nasdaq 100 on Tradingview

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.