U.S. Indices Technical Outlook:
- S&P 500 took out Feb lows but reversed hard
- Nasdaq 100 coming out of low, but will the rally last?
- Dow Jones still sits the best but at mercy of broader market
S&P 500, Nasdaq 100, and Dow Jones Technical Forecast
Earlier this week the S&P 500 took out the Feb 24 low and reversed to close back above it. That flush and reverse set the stage for a rally, and after yesterday’s Fed meeting the market has moved way off those lows. But it doesn’t mean it’s out of the woods just yet.
We never saw any real panic as fresh lows were being set and it makes this cycle feel incomplete without that exclamation point. There is resistance in the near-term around 4300, then above there lies 4370 and a trend-line off the April high.
Weakening price action soon with some aggressive downside will imply that this was just a corrective bounce and that lower levels are on the horizon. The weekly low at 4062 will quickly come into play if this is the case.
S&P 500 Daily Chart
The Nasdaq 100 is bouncing, but overall weaker. There is resistance in the vicinity of 13535 to contend with immediately along with the trend-line from April, followed by 13788. A turn back down will quickly have the 12716 low back in focus.
Nasdaq 100 Daily Chart
The Dow Jones is trading stronger than the broader market, but will be at its mercy if we see more de-risking. It has strong resistance around the 34100 level to content with right away. We may see a near-term turn down from this at the least, even if it is to trade higher. Would-be shorts could use that level as a backstop to assess risk from.
Dow Jones Daily Chart
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—Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX