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
Oil - US Crude
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
  • Gold prices are finally showing life in what should be one of the best fundamental environments in recent history.Get your $XAUUSD market update from @CVecchioFX here:https://t.co/HnvUE9TvP8 https://t.co/GuLYbE19VH
  • ECB VP de Guindos: - ECB forecasts inflation to decline next year and remain low - There is still time to decide on the PEPP program's destiny $EUR
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 2.74% Gold: 1.27% Oil - US Crude: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/h3JUhrkoia
  • USD/CAD continues to reverse lower, now trading below the June swing high $USDCAD https://t.co/dl3shF0neT
  • Company earnings bolster FTSE 100 index. Downtrend on UK treasury yields continues. Get your market update from @WVenketas here:https://t.co/b7ALnOgbaO https://t.co/MVR4c4VVTZ
  • https://t.co/Ldf98qDw0P
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.15%, while traders in Wall Street are at opposite extremes with 75.10%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/CeIupH0opI
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.61% Wall Street: 0.61% FTSE 100: -0.04% Germany 30: -0.04% France 40: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/iblONqMY4m
  • EUR/USD continues to push higher on post-FOMC USD weakness, eyeing test of 1.19 $EURUSD https://t.co/yzkh0Cjlj3
  • It's Robinhood ($HOOD) IPO day, and the stock is down from its open. Here's what I had to say about it ahead of time in an interview with @KristenScholer @cheddar https://t.co/kzf5oAvfJC
Dow Jones & Nasdaq 100 Technical Outlook Continues to Diverge

Dow Jones & Nasdaq 100 Technical Outlook Continues to Diverge

Paul Robinson, Strategist

U.S. Indices Technical Highlights:

  • Nasdaq 100 could carve out a macro-sized wedge
  • Dow Jones lower-low may only be beginning of bull-flag
Advertisement

Dow Jones & Nasdaq 100 Technical Outlook Continues to Diverge

This year has brought with it a very interesting series of rotations between old-school and new-school stocks, which has the Dow and Nasdaq 100 trading places on a regular basis. This theme doesn’t look likely to end any time soon, so we will need to continue looking at these two major indices through their own technical lens’.

The Nasdaq 100 has taken back leadership from the Dow, which has led it to record territory again. The trend at the moment is strong and hard to fight, but there is the possibility of weakness here that could fill out a pattern that has been in the works since February.

If the NDX pulls back it could complete a nicely formed wedge pattern that will then at some point likely this summer lead to a big move. The trend is up and as such it would seem such a breakout would come on the top-side, but we wouldn’t be able to rule out the possibility that it turns into a topping formation.

For now, again we will want to respect strength. In the event of a decline from here, watch the underside of the wedge pattern (also the September trend-line) for support, currently just above 13400.

Nasdaq 100 Daily Chart (wedge possibility)

ndx 100 daily chart

Nasdaq 100 Chart by TradingView

The Dow Jones just rolled over and carved out a lower-low from May, the first intermediate-term lower-low since late October. That turned out not to be a sign of more weakness ahead, but instead a low that led to a rally into the U.S. elections and beyond.

A similar scenario could play out here where this is the end of a correction. If it takes some time to back-and-fill, it may even fill out a bull-flag pattern. The March trend-line and June slope were both broken, so there is still some concern of lower prices, and on that it may be best to wait for further developments before dialing up a bullish bias.

But if this pattern does come to develop and the Dow strengthens, then look for this to take some power out of the Nasdaq 100 as the rotation swings back in favor of value over growth

Dow Jones Daily Chart

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