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S&P 500, Dow Jones & Nasdaq 100 Forecast: Consolidation Interval Continues


U.S. Indices Technical Highlights:

  • S&P 500 treading water, may use some extra time
  • Nasdaq 100 hanging out round a top-side trend-line from final yr
  • Dow Jones weaker, might check prior summer time document excessive

S&P 500, Dow Jones & Nasdaq 100 Forecast: Consolidation Interval Continues

The S&P 500 hasn’t gone anyplace of latest and that may very well be an excellent factor. After turning into extraordinarily prolonged through the October run a interval of sideways value motion may arrange a powerful base that results in sustained positive factors.

It’s too quickly to inform if that’s what is going on right here, or if maybe we are going to see a correction occur that takes value again right down to the outdated excessive seen through the late summer time. If we see extra horizontal value motion, nice, if we don’t a check of the outdated excessive may additionally supply up a pleasant alternative to affix the pattern with a backstop from which to evaluate threat.

In both state of affairs, a while must elapse earlier than readability will current itself and an excellent threat/reward alternative develops. Ideally, for a horizontal sample to develop the market holds onto 4630 on a each day closing foundation, and if we see some promoting are available then a powerful response is most popular off the 4545 stage.

S&P 500 Each day Chart

spx daily chart

S&P 500 Chart by TradingView

The Nasdaq 100 ran aground into the September 2020 top-side trend-line. High-side trend-lines inside a big channel construction can act as significant resistance and as accelerants when damaged. Thus far we’re seeing value transfer sideways across the line after a short breach earlier this month.

We might even see a near-term flip down once more as the road comes into focus, however once more this may very well be the perfect case state of affairs extra broadly talking because the market digests the October shot greater. A consolidation interval round 15905 because the low may set the NDX to take out the highest of the channel and speed up greater.

Nasdaq 100 Each day Chart

ndx daily chart

Nasdaq 100 Chart by TradingView

The Dow Jones is a bit weaker than the opposite two indices and will see the August excessive at 35631 quickly. A check and response off that stage may set the Dow up for one more leg greater. It’s potential it consolidates up right here as nicely, which might be wholesome as nicely. In ‘wait-and-see’ mode.

Dow Jones Each day Chart

dji daily chart

Dow Jones Chart by TradingView

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—Written by Paul Robinson, Market Analyst

You may observe Paul on Twitter at @PaulRobinsonFX

DailyFX offers foreign exchange information and technical evaluation on the tendencies that affect the worldwide foreign money markets.

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