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
GBP/USD
Bearish
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
S&P500, Dow Jones Price Outlook: May Press Lower Below These Levels

S&P500, Dow Jones Price Outlook: May Press Lower Below These Levels

2019-08-05 15:03:00
Mahmoud Alkudsi, Market Analyst
Share:

S&P500, Dow Jones Price Outlook

Have you seen our newest trading guides for USD, EUR and Gold ? Download for free our latest forecasts

Dow Jones - S&P500 - Sellers in Charge

On July 26 S&P 500 printed 3,028 – Its highest level at all times. However, on the following days the index reversed lower then closed on Friday in the red losing near 2.9% of its value. Similarly, the Dow closed the weekly candlestick with rough 2.4% loss.

Alongside this, the Relative Strength Index (RSI) fell sharply on the S&P 500 from 64 to below 50 today, indicating to the seller’s domination. In turn, last week the oscillator on the Dow remained flat around 35 however, today (RSI) dipped below 30 indicating the strength of the downtrend momentum.

Just getting started? See our Beginners’ Guide for FX traders

Dow Jones PRICE Daily CHART (Oct 1, 2017 – AUg 5, 2019) Zoomed OUT

Dow Jones price daily chart 05-08-19 Zoomed out

Dow Jones PRICE Daily CHART (April 20 – Aug 1, 2019) Zoomed IN

Dow Jones price daily chart 05-08-19 Zoomed in

Looking at the daily chart we notice today, the Dow has fallen to the lower trading zone 24,860 – 26,050 and currently eyes a test of the June 13 low at 25,878. Hence, a close below the high end of this zone may press the index towards the low end. Although, the weekly support levels marked on the chart (zoomed in) should be watched along the way.

It’s worth noting the divergence between the current downtrend and the volume. This reflects an aggressive new short selling and may increase the odds that the downtrend may continue.

On the flip side, a close above the high end of the zone could push the price higher towards 26,610. However, the weekly and daily resistance levels underlined on the chart need to be considered.

Having trouble with your trading strategy? Here’s the #1 Mistake That Traders Make

S&P500 PRICE CHART (Aril 30, 2017 – Aug 5, 2019) Zoomed out

S&P500 price daily chart 05-08-19 Zoomed out

S&P 500 PRICE Daily CHART (May 15 – AUG 5, 2019) Zoomed IN

S&P 500 price daily chart 05-08-19 Zoomed in

Looking at the daily chart we notice today, the S&P 500 has declined to the lower trading zone 2,862 – 2,912 and currently looking for a test of the 13 June low at 2,874. Therefore, a close below the low end of the zone may press the index towards 2,791. Nonetheless, the weekly support levels printed on the chart (zoomed in) should be kept in focus.

On the other hand, any failure in closing below the low end of the current trading zone may reverse the price direction towards the high end. Although, the daily resistance area from 2,885 up to 2,895 would be worth monitoring. See the chart to know more about the next significant resistance levels and zones in a further bullish scenario.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES

News & Analysis at your fingertips.