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.

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
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
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
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
Bearish
More View more
Real Time News
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT as he goes over London #FX & #CFD charts for the next week. Register here: https://t.co/CoMkMA0pdF https://t.co/TBv201f9hp
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/RENalKFdNu
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.33%, while traders in NZD/USD are at opposite extremes with 66.32%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/iWNOm3LGo4
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.08% Silver: 0.47% Gold: 0.44% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/sjPmNBF4Dr
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/qmkJaNY3wf
  • China flexing their muscles as US look to sell $7bln worth of arms to Taiwan https://t.co/RYV8MnfYvN
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.56% 🇦🇺AUD: 0.13% 🇪🇺EUR: 0.10% 🇨🇦CAD: 0.09% 🇨🇭CHF: 0.04% 🇬🇧GBP: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/0Ysc7X6418
  • $USDJPY edging closer to jawboning levels https://t.co/X6Er140Zbt
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: US 500: 0.15% Wall Street: 0.02% Germany 30: 0.00% France 40: -0.16% FTSE 100: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/XWtHexwz1O
  • $GBP https://t.co/SjNYZBguXd
Nasdaq – ‘The’ Line-in-the-Sand to Watch; S&P 500, Dow Jones to Follow

Nasdaq – ‘The’ Line-in-the-Sand to Watch; S&P 500, Dow Jones to Follow

2020-08-12 12:30:00
Paul Robinson, Strategist
Share:

U.S. Indices Highlights:

  • Nasdaq 100 channel keeps market pointed higher for now
  • S&P 500 falls shy of a record high, to follow NDX
  • Dow Jones trying to make up ground, too little too late?

The Nasdaq may be in retreat mode from the recent high, but as long as it stays tucked within the confines of a neat upward channel in place since April the outlook remains generally bullish. Given the length of time it has been running higher in it and how far we are off the March low it could break at any time. However, it is viewed as prudent to wait for an actual break to occur first before looking for a decline to take hold.

The lower parallel of the channel may be used by would-be longs to position for another leg up, while the same line can be used, if broken, for turning towards potential short opportunities. If status quo remains then look for a test of support to hold before another push to new highs, but if character changes then it will be very important to see how any type of bounce unfolds following a break.

With the Nasdaq home to the bull market darlings (FANMAG), a make or break situation could have broad implications going forward as to how things play out not only in the U.S., but globally as the U.S. equity market accounts for roughly 55% of global stock market capitalization.

Equities Forecast
Equities Forecast
Recommended by Paul Robinson
Check out the Q3Equities Forecast
Get My Guide

Nasdaq Daily Chart (channel guide)

Nasdaq daily chart

Nasdaq 100 Chart by TradingView

Last week, the S&P 500 finally filled the February 24 corona-gap, but fell just shy of a new record high yesterday. Getting above 3393 will clock a new record, but getting across that line may be a bit of a struggle. Like the NDX there is some slope support even if it isn’t as strong. The line rising up from May is around the bottom of the corona-gap and will be an important one for the market to hold should we see a pullback develop.

.

S&P 500 Daily Chart (failed near record high)

S&P 500 daily chart

S&P 500 chart by TradingView

The Dow Jones remains a laggard overall, but did make up some ground relative to the SPX and NDX in the past week. It is still shy of the corona-gap starting at 28402 running up to 28992. It will take a big of a haul for the Dow to get back to its record high at 29568, a level that would require a strong breakout by the S&P 500 to accomplish. There is support on a pullback around 27070, with a recent set of short-term peaks and slope from May in the area.

Dow Jones Daily Chart (lagging but remains supported)

Dow Jones daily chart

Dow Jones Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have 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