News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
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
Oil - US Crude
Mixed
Wall Street
Bearish
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
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
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.38%, while traders in NZD/USD are at opposite extremes with 64.38%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/FK6WQOsr0r
  • Speaker Pelosi says she has a major difference of opinion with White House administration on relief - BBG
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 1.85% Gold: 0.79% Oil - US Crude: -1.53% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nJC51ehlu4
  • The price of gold bounces back from a fresh monthly low ($1860) on the back of US Dollar weakness. Get your $XAUUSD market update from @DavidJSong here:https://t.co/kFDANiwAm1 https://t.co/yPgmAR4P8Y
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.08% 🇬🇧GBP: 0.08% 🇨🇦CAD: 0.07% 🇨🇭CHF: -0.14% 🇳🇿NZD: -0.14% 🇪🇺EUR: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/86MpRGrAms
  • Daily virus cases rise to 31,084 in Italy, new record - BBG
  • "Exquisitely Focused" Great conversation and takeaways on a call this morning with @GuyAdami and the @DailyFX, @IG_US, @Nadex teams!
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: France 40: 0.52% FTSE 100: 0.13% Germany 30: -0.27% Wall Street: -1.23% US 500: -1.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/f17Gw2Mdnr
  • RT @DeItaone: $DIS SAYS 11,350 UNION WORKERS TO BE LAID OFF DEC. 31
  • US Treasury Yields: 2-Year: 0.151% 3-Year: 0.194% 5-Year: 0.386% 7-Year: 0.635% 10-Year: 0.862% 30-Year: 1.642% $TNX
Dow Jones Hammered From Resistance, Watch Trend Support

Dow Jones Hammered From Resistance, Watch Trend Support

2019-08-02 11:00:00
Paul Robinson, Strategist
Share:

Dow Jones Technical Outlook:

  • Dow sells off from top-side trend-line of long-term pattern
  • Room to go before trend-line support is met

See how the quarterly forecast has played out what it could mean for the big-picture – Q2 Equity Markets Forecast.

Dow sells off from top-side trend-line of long-term pattern

The Dow was treading water prior to the FOMC on Wednesday, but with a 25-bps cut already priced in and Fed language lacking a more accommodative tone the market sold off. Yesterday, the downside was furthered along with more Trump/Trade War headlines.

The Dow coming off where it did isn’t a surprise, though, given the top-side trend-line from the Jan 2018 high both it and the S&P 500 were struggling to overcome. The momentum of the down-move has been strong and favors even more weakness.

Tactically speaking, a smallish bounce/consolidation would be ideal for establishing continuation-style trades, but perhaps momentum will be too strong for that to unfold. The initial target on more weakness is the trend-line rising up from the December low.

It will be an interesting spot to see if buyers can show up, or whether a test of the 200-day is the next objective on the market’s mind. For now, sitting tight until next week where we will get an opportunity to see how the market wants to handle this first bout of selling from record levels (and resistance).

Long-term, we have massive Reverse Symmetrical Triangles (RSTs) (also known as Megaphones) in both the Dow and S&P 500, that if full-on bearish forces come to fruition mean the market will be set up for a volatile remainder of the year. Good news for traders, bad news for investors.

Check out the IG Client Sentiment page to see how retail traders are positioned and what it could potentially mean for various currencies and markets moving forward.

Dow Jones Daily Chart (down-move set to continue)

Dow Jones Hammered From Resistance, Watch Trend Support

Dow Jones Chart by Tradingview

Dow Jones Weekly Chart (RST/Megaphone)

Dow Jones Hammered From Resistance, Watch Trend Support

S&P 500 Weekly Chart (RST/Megaphone)

Dow Jones Hammered From Resistance, Watch Trend Support

S&P 500 Chart by Tradingview

To learn more about U.S. indices, check out “The Difference between Dow, Nasdaq, and S&P 500: Major Facts & Opportunities.” You can join me every Wednesday at 10 GMT for live analysis on equity indices and commodities, and for the remaining roster of live events, check out the webinar calendar.

Tools for Forex & CFD Traders

Whether you are a beginning or experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES