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Technical Outlook for the S&P 500, Dow Jones, and Nasdaq 100

Technical Outlook for the S&P 500, Dow Jones, and Nasdaq 100

2019-01-25 10:20:00
Paul Robinson, Currency Strategist
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S&P 500/Dow Jones/Nasdaq 100 Technical Highlights:

  • S&P 500 near trend-line off record high
  • Dow Jones looking at trend-line, 200-day
  • Nasdaq 100 has t-line resistance too

Q1 Forecasts are out. Check out the Trading Guides page for these and other guides to help you get off to a good start to 2019.

S&P 500 near trend-line off record high

Momentum has slowed in recent sessions, but the S&P 500 continues to demonstrate strength by refusing to decline. About 35 points higher is a trend-line off the record high, which lines up approximately with the Monday high. How price action plays out upon a test of resistance could be telling as the move off the low reaches into overbought territory. A 100 point or so pullback in rather quick fashion could be nearing once we see a swift turn lower.

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With global stock market volatility high, see where our analysts see stocks headed in the Q1 Global Equities Forecast.

S&P 500 Daily Chart (t-line off record high)

S&P 500 daily chart, t-line off record high

Dow Jones looking at trend-line, 200-day

The Dow has put on an impressive rally, rising through prior resistance levels with little trouble. Ahead, though, lies the trend-line off the record high and in confluence is the widely-watched 200-day MA. This should be a formidable barrier for the market to cross. While psychological levels aren’t the most reliable forms of support and resistance, it is worth noting that confluence arrives at the 25k-mark.

Dow Daily Chart (T-line, 200-day)

Dow Daily Chart, t-line, 200-day

Nasdaq 100 has t-line resistance too

The Nasdaq 100 doesn’t have as formidable of resistance as the other two major indices, but if those turn then so will the tech-heavy index. The trend-line in play here runs over from October across peaks in the subsequent two months. The NDX is somewhat lagging behind, so it may not make it to resistance with the S&P and Dow, and if it continues to lag, from a tactical standpoint it may be the better short once the market decides to turn down.

Nasdaq 100 Daily Chart (T-line off record high)

Nasdaq 100 daily chart, t-line off record high

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.

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---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.

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