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
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/wbf3Lwe5Qt
  • Join analyst @DavidJSong at 5:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/2B8CdSgkuq
  • The Aussie sell-off halted at key lateral support this week and puts the focus on a break of this key range. Here are the levels that matter on the AUD/USD weekly chart. Get your $AUDUSD technical analysis from @MBForex here: https://t.co/rU4u1tMlmz https://t.co/QbyxUrDq1a
  • The $JPY market faces a clear disconnect between domestic economic data and monetary policy. What if that were to change? Get your market update from @DavidCottleFX here:https://t.co/4Gr8tLaHvj https://t.co/0eXMv5CTnd
  • #Forex Forecast via @DailyFX: US Dollar Technical Outlook on $DXY, $AUDUSD, $USDCAD, $USDJPY & $EURUSD Full Analysis ⬇️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/17/usd-price-us-dollar-chart-forecast-dxy-audusd-usdcad-usdjpy-eurusd.html
  • Further escalation in Hong Kong will likely bode poorly for risk appetite https://t.co/0NjUd3ahBu
  • How should you trade around event risks and what steps can you take to improve your trading psychology? Find out from @JoelKruger, a trading consultant and mentor. Only on Global Markets Decoded. Missed the episode? Read up here:https://t.co/JWIGJk4vKa https://t.co/WB39x4GP99
  • Poll - Does your personality match your #tradingstyle? Vote and find out from @WVenketas here: https://t.co/vREsUIWSJd https://t.co/Ft0ExAmMpq
  • #Dow Jones hits record high, however, central bank liquidity prompts volatility implosion. #FTSE 100 among underperformers with focus remaining on politics. Get your #equities market update from @JMcQueenFX here: https://t.co/EOFleGSeBp https://t.co/ecAyfSUeAM
  • RT @C_Barraud: 🇪🇺 #ECB’s Muller Says More Assets Could Join Stimulus List in Slump - Bloomberg https://t.co/roGEgu0VTQ
S&P 500 Backing into Support, Dow Jones & Nasdaq 100 Chart Outlook

S&P 500 Backing into Support, Dow Jones & Nasdaq 100 Chart Outlook

2019-03-21 10:30:00
Paul Robinson, Currency Strategist
Share:

S&P 500/Dow Jones/Nasdaq 100 Technical Highlights:

  • S&P 500 backing into prior resistance, now support
  • Dow Jones remains the laggard, below resistance
  • Nasdaq 100 is unrelenting, but can it continue to lead?

Check out the numerous forecasts and educational content offered on the DailyFX Trading Guides page.

S&P 500 backing into prior resistance, now support

The 2800/17 region was a big area of resistance for the S&P 500 not long ago, the zone started building its relevance back in October. Early this week the market snuck above it and now we’re already in a retest of this important area. It would have been more ideal for the sake of clearance to have traded higher before the retest, but nevertheless the zone was breached.

Helping give this zone some reinforcement is a trend-line off the December low. It’s not the sturdiest of trend-lines given the distance between the two inflection points and the fact it only has the bare minimum number to even create a trend-line, but it’s still a source of support.

How the market behaves here will be important. Can it hang on and use the confluent levels/lines as support, or will we see a sinking back below and changing of the chart-scape? For now, abiding by the rule of old resistance becomes support, along with the rule of thumb that support is to be trusted until broken.

A solid hold here and shove higher will bring into light the possibility of a test or better of the record high. A breakdown and we’ll have to evaluate the severity of the break and whether a larger decline may be in the works.

Stocks are rallying, but will it last in the long-term? Find out where our analysts see stocks headed in the Global Equities Forecast.

S&P 500 Daily Chart (Old resistance, new support)

S&P 500 daily chart, old resistance, new support

Dow Jones remains the laggard, below resistance

The Dow unsurprisingly pulled off with a little more vigor than the S&P and the Nasdaq 100, which actually rose. It’s been a severe laggard for a few weeks now and not helping is price and trend-line resistance aligning over the 26k-mark. If the broader market is to weaken (i.e. S&P fall below 2800) then the Dow remains the go-to short for as long as it continues to demonstrate relative weakness and abides by resistance.

Dow Daily Chart (relative weakness, resistance)

Dow daily chart, relative weakness, resistance

Nasdaq 100 is unrelenting, but can it continue to lead?

The Nasdaq 100 continues to forge on which is a good sign for the market, but it is becoming extended. It’s also becoming extended into what could amount to a significant test of a long-term trend-line, starting back in June 2016. Nevertheless, as long as the NDX continues to generally lead the way then it is a target for longs on dips/consolidations.

Nasdaq 100 Daily Chart (can it continue to lead?)

Nasdaq 100 daily chart, can it continue to lead?

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

News & Analysis at your fingertips.