Nasdaq 100, S&P 500, Dow Jones Value Setups

Dow Jones, S&P 500, Nasdaq 100 Outlook:

Equities Stay Underneath Strain

After a grueling week for US fairness indices, bulls had been unable to keep up the uptrend which has continued regardless of the looming world financial crunch. After the Nasdaq and S&P 500 reached all-time highs at first of September, the a lot anticipated pullback quickly got here into play, leading to two consecutive weeks of losses. From a historic perspective, September is understood to supply excessive volatility and with that being stated, in the course of the month, worth motion could also be of explicit curiosity because the US Presidential Election nears.

Fundamentals may even doubtless play a task as each uncertainty concerning additional stimulus measures and the upcoming elections are further components to contemplate.

Go to the DailyFX Instructional Heart to find why information occasions are Key to Foreign exchange Elementary Evaluation

Nasdaq 100 Technical Evaluation

This week, tech shares plummeted; leading to a pullback to a key degree of assist, shaped by the 50% retracement of the June low to the September excessive. This comes after the prevalence of a MACD crossover from above the zero-line on three September, indicating that the development may reverse within the short-term.

NASDAQ 100 Every day Chart

Chart ready by Tammy Da Costa, IG

In the meantime, the 50% retracement degree, mixed with the psychological degree of 11000 saved bears at bay, highlighting that bullish continuation couldn’t but be dominated out, with the 38.2% retracement degree serving to to carry as resistance at 11287.1. A break above this degree may even see worth motion acquire additional momentum, with the psychological degree of 11500 being a subsequent degree of curiosity. Nevertheless, if bears push by way of 11000, a attainable reversal in direction of the draw back may look extra doubtless.

S&P 500 Technical Evaluation

Following in Nasdaq’s footprints, the S&P 500 additionally skilled its second consecutive week of losses, driving worth motion right into a confluent zone, between the 23.6 and 38.2% Fibonacci ranges. At present, the Stochastic indicator on the Every day chart is hovering round 20, indicating that the index could also be coming into or nearing oversold territory.

If bears are in a position to break beneath 3339.35, the 38.2% Fibonacci degree, additional draw back might present with the psychological degree of 3300 providing further assist potential. On the flip facet, the 23.6% retracement degree continues to carry as resistance at 3435.57.

S&P 500 Every day Chart

Chart ready by Tammy Da Costa, IG

Dow Jones Index Technical Evaluation

After reaching its peak in February, the Dow Jones Index plummeted because the coronavirus pandemic created panic all through the markets. Nevertheless, since then, a powerful bullish development prevailed permitting the index to drive in direction of the psychological degree of 2900.

Now, as costs have began to retrace, presently hovering round 28000, bulls and bears are eyeing psychological ranges on both facet, however for now, worth motion continues to stay above the trendline.

Dow Jones Index Every day Chart

Chart ready by Tammy Da Costa, IG

On the time of writing, IGCS signifies that bears are dominating the market, with 56% of retail merchants holding quick positions within the Dow. Though we sometimes take a contrarian view to crowd sentiment, present market circumstances may even see costs persevering with to fall contemplating current adjustments to the IGCS indicator.

— Written by Tammy Da Costa, Market Author for DailyFX.com

Contact and comply with Tammy on Twitter: @Tams707