Dow Jones & S&P 500 Highlights:
S&P 500 trying to hold over 200, attack gap
The U.S. stock market has recently continued its ascent towards higher levels, without too many significant bumps. The 200-day in the S&P 500 stood in the way, and while there may be some more volatility to come around it, thus far it hasn’t been a significant hurdle.
The March 4 gap-fill at 3130 looks like it could be next up. Beyond there the gap from 3337 down to 3257 that kicked off the corona meltdown from will be targeted should the first gap fill here soon. But before we get there the price action will need to continue to be relatively stable to keep things tilted in favor of longs.
Generally, it continues to make sense keeping an upward bias until evidence suggests otherwise. Given how far we have come things could change quickly, so while the outlook remains constructive would-be longs need to remain on the look-out for signs conditions could change.
S&P 500 Daily Chart (200-day/gap-fill)
The Dow Jones has been lagging a bit but has overcome its hurdle in the 2016 trend-line so far. This puts the 200-day at 26294 in focus as the next potential roadblock. Beyond there the March 4 gap at 27090 will be targeted.
A rip-roar rally might not develop, but just as is the case with the S&P as long as price action remains stable then longs should have the upper hand. It will take a sharp turn down that fails to bounce back to potentially switch gears towards a bearish outlook. Keep an eye on the trend-line off the March low as a potential point of support.
Dow Jones Daily Chart (2016 trend-line/gap-fill)
Dow Jones Chart by TradingView
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
