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. See our updated Privacy Policy here.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
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
Oil - US Crude
Bullish
Wall Street
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • The Nasdaq 100 index has likely formed a bearish Gartley pattern, which hints at further downside potential. Negative MACD divergence on the weekly chart suggests that upward momentum may be fading. Get your market update from @margaretyjy here: https://t.co/GkMEkVA7YR https://t.co/E1vyCMVt6K
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1G4lMu https://t.co/2TpkkUu7Hg
  • Tesla boss Elon Musk is seemingly running the cryptocurrency market single-handed this week with his tweets prompting a massive sell-off before today’s sharp rally. Get your market update from @nickcawley1 here: https://t.co/qGci02osOP https://t.co/Yp24Sakrfl
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/LDP3HlN4A3
  • GBP/USD on the front foot to close the week. Bulls aim for YTD peak, while EUR/GBP range is maintained. Get your market update from @JMcQueenFX here: https://t.co/neGBchlJ0O https://t.co/KME51FSF0D
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCrRwD https://t.co/7w5jodyzj0
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/L3LPCph2ST
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/ysxKO30ZWw
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/5nHxtlZ7nn
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/lqpXwWjVFt
S&P 500, Dow Jones, Russell 2000 Technical Landscape is Getting Interesting

S&P 500, Dow Jones, Russell 2000 Technical Landscape is Getting Interesting

Paul Robinson, Strategist

S&P 500/Dow Jones Technical Outlook:

  • S&P 500 pulling back from 3000+, top-side t-line
  • Dow Jones also coming off a top-side trend-line
  • Continue to watch the Russell 2000 as it lags severely

See how the quarterly forecast has played out what it could mean for the big-picture – Q2 Equity Markets Forecast.

S&P 500 pulling back from 3000+, top-side t-line

The S&P 500 topped 3k last week, notching it for the first time ever. In the process of doing so a top-side trend-line dating back to the January 2018 high was tagged. An interesting confluence of a psychological level and form of resistance.

So far, the response has been relatively benign with only a shallow pullback developing. That could change of course, but as long as the market doesn’t fall apart, despite resistance, we will have to respect the generally strong trend.

If, however, we see the market start to turn lower with aggression, then it is possible it is the beginning of a decline out of a Reverse Symmetrical Triangle (RST), or known to some as a Megaphone pattern.

These patterns through their increasingly larger price swings indicate growing instability in a trend and can mark major tops; in this case it would be growing uncertainty in a bull market since 2009 that has been one of the most persistent in history. The time from Jan ‘18 to now is a large span of time for such a topping pattern to develop, which is in good proportion to the extreme bull market run we’ve seen since the depths of the GFC. It’s implications could be quite sizable.

A top and drop could be arriving at an interesting point in time as well given we are heading through the summer towards the fall, a time when stocks have been known to struggle to flat-out get routed.

Check out the IG Client Sentiment page to see how retail traders are positioned and what it could potentially mean for various currencies and markets moving forward.

S&P 500 Weekly Chart (RST/Megaphone)

S&P 500, Dow Jones, Russell 2000 Technical Landscape is Getting Interesting

S&P 500 Daily Chart (Top-side t-line, 3k area)

S&P 500, Dow Jones, Russell 2000 Technical Landscape is Getting Interesting

Dow Jones also coming off a top-side trend-line

The Dow Jones is also trading at the trend-line from January 2018. Following the S&P here as it is the broader index, but keep an eye on how the Dow performs relative to it.

Dow Jones Daily Chart (top-side t-line)

S&P 500, Dow Jones, Russell 2000 Technical Landscape is Getting Interesting

Continue to watch the Russell 2000 as it lags severely

The Russell 2000 is an index I have been discussing with increasing regularity due to the glaring divergence in performance versus large-cap stocks. Small divergences amongst indices are normal and nothing to be alarmed about, but when large-caps (as per the SPX) are trading in record territory and small-caps (as per the R2k) are 12% off their record levels, we could have a problem brewing.

The lack of interest by market participants to pick up higher risk growth stocks is a warning sign of waning risk appetite. With the S&P already building a bearish topping pattern, this further adds to the notion that growing instability may soon come to push the market in reverse. There are other signs too that perhaps the zeal of market participants to own stocks is on the decline; FAANG has lost some interest as it remains below its yearly and record high. (See: GOOG Weighs on FAANG Like FB Did Last Year…)

Russell 2000/S&P 500 Weekly Chart (Major divergence)

S&P 500, Dow Jones, Russell 2000 Technical Landscape is Getting Interesting

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