Indices Technical Forecast: Neutral

  • The market remains in recovery mode, but big levels lie ahead
  • S&P 500 and Dow could reach the 200-day MA quickly
  • Anticipating volatility around the widely-watched moving average

S&P 500, Nasdaq 100, Dow Jones Forecast for the Week Ahead

The S&P 500 is powering ahead towards the 200-day moving average and a trend-line of the highs that are in almost exact confluence. Nearby is a less influential horizontal level from late April, early May around the 4300 mark.

A run-in with confluent resistance just over 4300 has a high likelihood of inducing volatility, regardless of the catalyst. Within the context of a broader bear market it could also be the capper on a bear market rally. For now, keep an eye out for signs of a reaction off resistance over 4300.

S&P 500 Daily Chart

S&P 500 Daily Chart

S&P 500 Chart by TradingView

Nasdaq 100 Technical Forecast

TheNasdaq 100 is breaking out above trend-line resistance and this has it trading in open space. The 200-day moving average is at 14055, so keep an eye on how the market behaves around that level should we reach it this week.

Nasdaq 100 Daily Chart

Nasdaq 100 Daily Chart

Nasdaq 100 Chart by TradingView

Dow Jones Technical Forecast

The Dow Jones is just shy of the 200-day moving average. Like the S&P it also has a line of confluence, helping bolster the area around 33900 as a big one. A reversal in momentum could set up the short side of the market.

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

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