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S&P 500 and DJIA Maintains Bullish Trajectory, However, Italian Risk’s Loom

S&P 500 and DJIA Maintains Bullish Trajectory, However, Italian Risk’s Loom

Justin McQueen,

Equity Analysis and News

  • S&P 500 Maintains its bullish path
  • Dow Jones breaks above trendline resistance posting fresh record highs
Price200DMARSIOpen InterestIG Sentiment
Europe
FTSE 1007512749168600,367Mixed
DAX (Closed)123531248463-Bearish
CAC 405495538768279,771Mixed
US
S&P 50029222761642,706,609Bullish
DJIA265482509673114,199Bullish
Nasdaq 1007586702263248,299-

S&P 500

Improved risk sentiment has stemmed from reports that the Italian government may reduce its budget deficit target for 2020 and 2021. As such, the S&P 500 is called to open modestly higher. The rising channel keeps the S&P 500 on a bullish path. However, Italian risks may be back on the rise depending on the EU’s response to the budget.

Dow Jones Industrial Average

After another record high reached in the DJIA, the bias remains to the upside, which has been further supported by the break above the trendline. Prices would need to hold above the trendline to keep the index firm. Alongside this, RSI indicators show that there is a bullish divergence and thus supporting the case for higher prices. However, failure to consolidate above may leave the index vulnerable to the downside with the bottom of the channel coinciding with the support volume zone at 26048.

KEY TRADING RESOURCES:

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

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