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
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
  • Do you know which type of stock is the right investment for you? Stock types help investors decide on specific #stocks to trade or assist with valuation methods either fundamentally or technically. Learn more about stock types here: https://t.co/yO3JalkqUU https://t.co/RoNdExHAdt
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
  • #FTSE 100 testing key support as the index lacks a directional bias. #DAX reverses off channel top. Get your indices technical analysis from @JMcQueenFX here: https://t.co/IHF2dgMfg9 https://t.co/2fMTFlOeTR
  • With knowledge of price action, traders can perform a wide range of technical analysis functions without the necessity of any indicators, including management of risk. Build on you knowledge of price action here: https://t.co/9hQA0bsYtt https://t.co/5KQowxuiBf
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/85JHunf2Xf
  • Many traders ask how a trading method that is 77 years old is applicable today. Learn about the Gartley pattern and see how you can incorporate it into your trading style here: https://t.co/2yPmGH0XvT https://t.co/rtqUKZSdn1
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/ywv7RVP9qY
Dow Jones at Risk of Selling Off, Watch the S&P 500 Rising Wedge

Dow Jones at Risk of Selling Off, Watch the S&P 500 Rising Wedge

2019-05-03 08:02:00
Paul Robinson, Currency Strategist
Share:

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

  • S&P 500 rising wedge teetering out of rising wedge
  • Dow Jones downside leader at the moment
  • Nasdaq 100 sitting at confluent support

Check out the fundamental and technical forecast for stocks as they rise towards record highs in the Q2 Equity Markets Forecast.

S&P 500 rising wedge teetering out of rising wedge

The rising wedge in the S&P 500 has been a focal point for the past couple of weeks, and with weakness in the past couple of sessions the index is edging outside the pattern. The break yesterday, though, wasn’t convincing as the market staged a minor rebound in the afternoon.

This leaves bearish price action to be desired, but could come soon, as it can take a little time once price breaches the underside trend-line of a rising wedge. We can use a break of the most recent swing-low or bottom of a consolidation pattern as a queue to look for momentum to pick up. In this case, a break below 2892.

A drop below there and the trading bias out of the wedge should turn decidedly bearish. The targeted objective would then become the 200-day MA at 2773 and bottom of the wedge down at 2722. If no trigger below 2892 develops, then a cross above the Wednesday high at 2954 will have the 3k psychological level and confluent trend-line crossing over from peaks set in 2018.

Traders are generally short the S&P 500, find out on the IG Client Sentiment page what this could be for prices moving forward.

S&P 500 Daily Chart (Rising wedge may soon trigger momentum)

S&P 500 daily chart, rising wedge may soon trigger momentum

Dow Jones downside leader at the moment

The Dow Jones has been the laggard lately, with it still having yet followed the S&P 500 and Nasdaq 100 to new record highs. Yesterday, the Dow nearly filled the April 12 gap. If the S&P breaks the above noted support then look for the Dow to continue acting as a downside leader with the 200-day MA at 25391 first targeted, followed by 25208. A breakout above 26696 will quickly bring into play the record intra-day high at 26951 and better.

Dow Jones Daily Chart (broken trend-line, wedge)

Dow Jones daily chart, broken trend-line, wedge

Nasdaq 100 at record high but extended

The Nasdaq 100 is sitting at a crossroad of support, with the old record highs and trend-line from December crossing each other’s paths. This confluent support comes just as the S&P is teetering out of the rising wedge. A breakdown below support along with the S&P breaking 2892 should have the index reeling. The 7505, 7252, and 7145 levels will be watched on weakness. Should support hold and a breakout above 7852 ensue, then the run higher continues…

Nasdaq 100 Daily Chart (at crossroad of support)

Nasdaq 100 daily chart, at crossroads of support

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.