• Contact Us
  • Homepages
Most Forex
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
Most Forex
No Result
View All Result
Home Technical Analysis

S&P 500 in Corona-gap, Dow Jones Lagging; Can Nasdaq Continue to Lead?

Forex Tips by Forex Tips
July 23, 2020
in Technical Analysis
0
S&P 500 in Corona-gap, Dow Jones Lagging; Can Nasdaq Continue to Lead?
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


U.S. Indices Highlights:

  • S&P 500 in corona-gap, fill with new highs could come soon
  • Dow Jones still has some work to do to get to the gap
  • Nasdaq 100 keeps on creating new records, sustainable?

The S&P 500 started the week by breaking out above the June high, and is currently in the massive gap-down from February 24 that kicked off the coronavirus meltdown in Q1. To fill the gap the S&P will need to rally up to 3337, where from there it will be just shy of the record high at 3393.

It could come quickly or it could come slowly or not at all, but as long as the trend structure in the near-term remains positive then so does the trading bias. At this juncture it would require a sharp downdraft followed by the inability to recover before considering flipping the script.

Thus far declines of forceful nature have been very short-lived, measured in days at most and in a couple of instances lasting only a single day (June 11, for instance). Which is why it will take some turning of the tide to get the edge in favor of shorts as a general trading bias.

That tune may change as the summer progresses, when seasonality may align with a vulnerable market that will have plenty of reasons to sell off (coronavirus, China-US tensions, US elections, etc.)…

Equities Forecast

Equities Forecast

Recommended by Paul Robinson

Check out the Q3Equities Forecast

S&P 500 Daily Chart (in corona-gap)

S&P 500 daily chart

S&P 500 Chart by TradingView

The Dow Jones is lagging behind as it isn’t home to all the big market darlings (FANMAG + Tesla), and so it suffers to rally with as much force as the S&P 500, and especially the Nasdaq 100 which is run by only a handful of stocks. The Dow has yet to overcome the June high at 27580, so that is first up as resistance, then the corona-gap in the 28Ks can be tackled.

There is some nice trend-line support rising up from a swing-low in April that has several inflection points. This will be first up along with the 200-day as an area of support on weakness. The area around the 200-day held good as resistance, so it anticipated to hold as support for now (~26200/300). But keep in mind if the market does start to roll over, given the relative weakness to other indices, the Dow could be a leader on the downside.

Dow Jones Daily Chart (>200-day, June high next)

Dow Jones daily chart

Dow Jones Chart by TradingView

The Nasdaq 100 is close to a new record high, which has been the case for nearly two months on a consistent basis. Roughly half the index is made up of only six stocks (FB, APPL, MSFT, AMZN, GOOG, TSLA), which makes it a pretty top-heavy index. For now as long as these momentum stocks keep dong their thing then so will the NDX, but slip up and that will change. Earnings the next couple of weeks could prove pivotal if there is a common theme amongst these stocks as they report.

The 100 is currently sitting outside of the bull channel dating back to 2010. When price leaves the confines of a structure of this nature things can turn violent as orderly gives way to disorderly. At some point the rally will let up, but for now the trend remains our friend. A break back inside the long-term channel will make the recent leg of the rally an ‘overthrow’ and act as a signal that a broader decline may be ready to get underway. For this to happen we would need to see the NDX trade below roughly 10150.

Nasdaq 100 Daily Chart (holding strong still)

Nasdaq 100 daily chart

Nasdaq 100 Chart by TradingView

Nasdaq 100 Weekly Chart (outside bull channel)

Nasdaq 100 weekly chart

Nasdaq 100 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





Source link

Share76Tweet47

Related Posts

Calls for a Top are Premature Even if Right

Gold Drifts Towards Range Extremes– XAU/USD Levels

by Forex Tips
April 13, 2021
0

Gold priceupdated technical trade levels - Weekly ChartXAU/USD recovery remains vulnerable sub-1767, Support 1707New to Gold Trading? Get started...

EUR/USD Pulls Back from July High as EU Splits COVID Recovery Fund

EUR/USD Short-term Chart Setting Euro Up for a Move

by Forex Tips
April 13, 2021
0

EUR/USD Technical OutlookEuro wedge forming on the 4hr/1-hr chartsLevels and lines to watch in the near-term EUR Technical Outlook:...

Tests Critical Trendline Resistance Level

AUD/CHF, NZD/CHF, EUR/CHF Chart Setups

by Forex Tips
April 13, 2021
0

Swiss Franc Technical Forecast – Talking PointsAUD/CHF at risk of further downside after a trendline breakNZD/CHF continued downside likely,...

Pound Rebound to be Short Lived- GBP/USD Levels

GBP/USD April Range Set on Support- Cable Levels

by Forex Tips
April 12, 2021
0

Sterling Technical Price Outlook: GBP/USD Trade LevelsSterling technical trade level update – Daily & Intraday ChartsGBP/USD carves April opening-range...

Aussie Support Grind- AUD/USD Breakout Pending

by Forex Tips
April 12, 2021
0

Australian Dollar Technical Price Outlook: AUD/USD Weekly Trade LevelsAustralian Dollar technical trade level update - Weekly ChartAUD/USD sell-off plunges...

Load More

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos
Forex Pulse Detector

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.