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
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
Bullish
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
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • The Euro’s struggle to move higher against a range of currencies continues and without further support this is likely to continue into the year-end. Get your $EURUSD market update from @nickcawley1 here: https://t.co/myZ7R0eGUb https://t.co/12WJd53Cx4
  • The #Dow Jones moved confidently higher last week as it added onto recent gains. Now, #stocks will aim to continue their rally while enjoying support from prior all-time highs. Get your technical analysis on #equities from @PeterHanksFX here: https://t.co/Qb89HIWxBY https://t.co/HMguTvD157
  • How can you trade #forex after a major release? Find out: https://t.co/sdxcXb8q60 #tradingstyle https://t.co/LNcbvVhIc2
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/mk1w1DM2Rh https://t.co/m763epaH2C
  • Crude #oil prices, $NOK and $SEK may rise if Donald Trump’s speech on trade war developments amplifies market buoyancy against the backdrop of critical US CPI and retails sales data. Get your market update from @ZabelinDimitri here:https://t.co/5rdK7xsQNq https://t.co/YnlQjKNZdS
  • RT @next_china: U.S., China chief trade negotiators spoke by phone on Saturday, Xinhua reports https://t.co/dMQtd0g4jY
  • The $AUDUSD and $EURUSD downtrend may prolong as traders counterintuitively buy into their descent. Meanwhile, the USD/CAD uptrend may accelerate on rising net-short bets. Get your market update from @ddubrovskyFX here: https://t.co/dlzJ31kf3f https://t.co/xp8P9MmCgb
  • As we head into next week, Cable is continuing to digest the massive leg higher last month, which at some point soon could mean another surge. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/LJ42YhDe3X https://t.co/5hGwhGBpLB
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/urMnUCq4fn
  • RT @markets: White-hot pot stocks have flamed out in spectacular fashion https://t.co/3GsVsRyZaZ
Dow Jones, S&P 500, Nasdaq 100 Technical Outlook in Record Territory

Dow Jones, S&P 500, Nasdaq 100 Technical Outlook in Record Territory

2019-11-06 09:00:00
Paul Robinson, Currency Strategist
Share:

US Indices Technical Outlook:

  • S&P 500 above Jan ’18 trend-line in record territory
  • Dow up against the Jan ’18 t-line, difficult spot
  • Nasdaq 100 up against a potential wedge line

See where our analysts see the stock market heading in the Q4 Equity Market Forecast.

S&P 500 above Jan ’18 trend-line in record territory

The S&P 500 is trading in record territory, but what is maybe more important is that it has also climbed above the top-side trend-line from January 2018, the same threshold the market stopped at in July before correcting. It’s a tough spot though to be a fresh buyer despite no resistance to contend with.

Stocks are not all that kind to those who pay up, but have been even unfriendlier to those trying to pick a top. From a tactical standpoint this makes things difficult unless you are long from comfortably lower levels, where at this point you perhaps tighten up trailing stops and see if the trend can continue as it has.

The key for would-be shorts will be gauging price action for signs of real selling coming in that could result in a tradable pullback. In the absence of a knifing move lower, 3100 might be the next stop for the SPX. A consolidation pattern may present an opportunity for new longs to get a clean look with decent risk/reward.

S&P 500 Daily Chart (extended above Jan ’18 t-line)

Dow Jones, S&P 500, Nasdaq 100 Technical Outlook in Record Territory

S&P 500 Chart by TradingView

Dow up against the Jan ’18 t-line, difficult spot

The Dow Jones Industrial Average is up and out of a partially developed wedge, now in a showdown with the same January 2018 trend-line that the S&P 500 has already climbed above. Perhaps it will stop there, but as already stated, betting against the market in the absence of bearish price action doesn’t hold a lot of appeal from where I sit. Buying is only slightly more appealing at these levels. Sometimes you have to just take to the sidelines and wait for a better look, this looks like one of those times.

Dow Jones Daily Chart (Jan ’18 t-line in the way)

Dow Jones, S&P 500, Nasdaq 100 Technical Outlook in Record Territory

Dow Jones Chart by TradingView

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.

Nasdaq 100 up against a potential wedge line

The Nasdaq 100 is of course in a similar situation, extended but not trading around as formidable of a trend-line as the S&P and Dow. There is a line running over current levels that could be of interest later if a rising wedge comes to fruition. But as it stands now, that is only a scenario that requires a lot of work before it comes to be reality.

A congestion pattern could do some good here (same goes for the other indices) for those looking for a follow-through long. Either that or a sharp reversal with momentum for potential shorts. Otherwise, risk/reward not viewed as too favorable either way here.

Nasdaq 100 Daily Chart (top-side t-lines)

Dow Jones, S&P 500, Nasdaq 100 Technical Outlook in Record Territory

Nasdaq 100 Chart by TradingView

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 1030 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.