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
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
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
USD/JPY
Bullish
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
Gold
Bearish
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • $EURCHF Daily Pivot Points: S3: 1.0879 S2: 1.0942 S1: 1.0971 R1: 1.1035 R2: 1.1069 R3: 1.1132 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • SKEW tail risk volatility indicator is currently at its highest level since July 29. Finally waking up it seems. What a leading indicator <end sarcasm>
  • Fed's Daly: -Sees US economy, FOMC policy in good place -Too soon to make sense of recent yield curve steepening -Wants 2% inflation achieved sustainably within a year -Data dependence still key for Fed policy
  • If you are harboring any designs for the Kiwi Dollar trades or have exposure, we have a 3Q CPI update coming shortly
  • $GBPUSD Daily Pivot Points: S3: 1.199 S2: 1.2289 S1: 1.2469 R1: 1.2768 R2: 1.2887 R3: 1.3185 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.40% 🇨🇦CAD: 0.28% 🇪🇺EUR: 0.05% 🇨🇭CHF: -0.16% 🇦🇺AUD: -0.30% 🇯🇵JPY: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/mniVWFo2RE
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.09% Gold: -0.81% Silver: -1.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fkMLmNBNWw
  • $USDJPY Daily Pivot Points: S3: 106.81 S2: 107.57 S1: 108 R1: 108.75 R2: 109.07 R3: 109.82 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @TradersTextbook: AAh, the unicorn stocks!🦄 Returns from recent unicorns since their IPO. Uber: -29% Lyft: -55% Peloton: -17% Fiverr:…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.07%, while traders in France 40 are at opposite extremes with 87.39%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/I63rBfzto7
Stock Market Outlook: Dow Jones and S&P 500 Selling Gains Pace

Stock Market Outlook: Dow Jones and S&P 500 Selling Gains Pace

2019-05-29 21:05:00
Peter Hanks, Junior Analyst
Share:

Dow Jones, S&P 500 Price Outlook:

Stock Market Outlook: Dow Jones and S&P 500 Selling Gains Pace

US stocks closed Wednesday trading off their daily lows, but still closed well beneath their Tuesday closing price. Like with much of May’s stock slide, first blood was drawn with an opening gap lower – this time beneath critical support for both the Dow Jones and the S&P 500.

Dow Jones Price Chart: Daily Time Frame (October 2018 – May 2019) (Chart 1)

dow jones price chart

For the Dow Jones, a daily close beneath the 200-day moving average in Tuesday trading was forewarning that further selling was on the horizon. At the open, the Industrial Average gapped lower through the neckline – around 25,232 - of the head and shoulders pattern formed during the last three months. Trading lower during the session, the Dow Jones bounced off the 61.8% Fib retracement at 24,943 before crawling into the close and ending -0.87% lower.

In the days ahead, the 200-day moving average will be a key technical level to watch. Should a recovery effort surpass the average, the descending trendline from May 1 highs will look to provide subsequent resistance. To the downside, expect 24,943 to act as support once more after proving its worth in Wednesday trading.

S&P 500 Price Outlook

The S&P 500 gapped beneath critical support of its own Wednesday, opening below 2,800. The level had been a barrier to attempted moves lower earlier in May and offered price influence in February and March. With a daily close beneath, it will now serve as resistance moving forward. But perhaps more importantly, a key line in the sand has been crossed and sentiment has taken a hit.

S&P 500 Price Chart: Daily Time Frame (March 2019 – May 2019) (Chart 2)

S&P 500 price chart outlook

As the session progressed, the Index traded lower to test the 200DMA and the 78.6% Fib level at 2,772. Thankfully for bulls, a rebound was mounted, and the S&P 500 was able to recapture both technical levels – offering a glimmer of hope for bulls heading into Thursday trading. That said, the outlook for both indices has taken a hit with the 200-day moving average crossed or in imminent danger and a building series of lower highs and lower lows.

View our Economic Calendar for live data releases and upcoming events with macroeconomic implications.

Aside from the technical outlook, the fundamental headwinds of trade wars and slowing global growth remain at large. With China considering capping rare earth metal exports, the former may only become more dangerous. Although these concerns have lingered for months, market participants seem to be running out of optimism to combat the constant concern. Thursday trading will offer further insight on both themes with advance goods trade balance and the second print of 1Q US GDP. As these themes and unfold, follow @PeterHanksFX on Twitter for updates.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Trade Wars and Tariffs Have Put the US Auto Industry in Peril

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

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

DISCLOSURES

News & Analysis at your fingertips.