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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
Wall Street
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EDT on DailyFX!
  • EUR/USD fell sharply last week and there are few signs yet that the selling is over. However, a bounce is likely before the decline resumes. Get your #currencies update from @MartinSEssex here:
  • The week ahead has many systemic issues that take control of the markets, but scheduled data is heavily skewed to the Dollar. Here is my video for the week ahead:
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @PaulRobinsonFX here:
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here:
  • BoE’s Tenreyro says evidence on negative rates are “encouraging” Meanwhile, STOXX Europe Banks Index resides at all time lows
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:
  • Anti-fiat #gold prices suffered the worst week since August as the US Dollar gained ground. Will losses extend? All eyes turn to fiscal stimulus hopes and non-farm payrolls data. Get your #metals update from @ddubrovskyFX here:
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:
  • What is seasonal change in volatility. Are we going through one right now? Find out:
Dow Jones, S&P 500 Outlook: Indices Retake Key Technical Support

Dow Jones, S&P 500 Outlook: Indices Retake Key Technical Support

2019-06-04 21:00:00
Peter Hanks, Analyst

Dow Jones, S&P 500 Outlook:

Dow Jones, S&P 500 Outlook: Indices Retake Key Technical Support

The Dow Jones and S&P 500 looked to undo losses posted in Monday’s session as they boasted their largest intraday rallies since January. A series of comments from Federal Reserve Chairman Jerome Powell early in the session boosted optimism regarding potential rate cuts which contributed meaningfully to the recovery. While some traders look for a continuation rally heading into Wednesday, both indices are precariously near support – exacerbating vulnerability to opening gaps like the Index faced in May.

Dow Jones Price Chart: Daily Time Frame (February – June 2019) (Chart 1)

dow jones price chart technical levels

The Dow Jones recaptured 25,225, posting its largest intraday rally since January 4. The area has influenced price in the past – posing as the neckline in a recent head-and-shoulders pattern. Still, the Industrial Average will need to distance itself before the level can hope to inhibit another concerted move lower. An initial open above 25,225 is the first step traders should look for if a bullish continuation is to occur.

If accomplished, the Index can look to retake the 200-day moving average to the topside around 25,400. If optimism continues, it will also have to negotiate a descending trendline from May, outlined in the weekly technical forecast. If pessimism returns, immediate support will reside at 24,943 and 24,797. If selling occurs in earnest, secondary support exists at 24,325 and 24,120

S&P 500 Price Outlook

The S&P 500 convincingly drove through its 200-day moving average, closing just north of the widely-watched 2,800 level. Unlike the Dow Jones, the S&P 500 could enjoy greater buoyancy from reclaimed support, but again, mind the gaps. Either way, the Index will now look to hold the 2,800 level and surpass the descending trendline from May and confluent Fibonacci support from 2,811 to 2,815 if it is to continue higher.

S&P 500 Price Chart: Daily Time Frame (February 2019 – June 2019) (Chart 2)

S&P 500 price chart outlook technical levels

To the downside, the 200-day moving average should look to buoy price before the S&P 500 can retest a confluence of Fib levels around 2,722 to 2,715 – an area which has held since mid-March. That said, Wednesday’s opening price action will be pivotal for the Index.

View our Economic Calendar for live data releases and upcoming events with macroeconomic implications.

Should it gap above resistance – an extended short squeeze could develop while simultaneously creating risky unfilled space underneath the confluence of technical levels. At the time of this article’s publication, S&P 500 futures have timidly extended their climb to 2,805. As price action unfolds, follow @PeterHanksFX on Twitter for updates.

--Written by Peter Hanks, Junior Analyst for

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Dow Jones, S&P 500, DAX 30, FTSE 100 Weekly Technical Forecast

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

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