All the major US equity indices rallied on Thursday, taking the indices within striking distance of the record intraday highs touched in Dec. 2014, on the back of the Russia and Ukraine cease-fire agreement. Also on Friday, the indices futures are pointing towards yet another solid opening as investors watch the release of Prelim UoM Consumer Sentiment index later during the day.
Given the backdrop, here is a technical update for important US equity indices, namely - Dow Jones Industrial Average, S&P 500 and Nasdaq 100.
Dow Jones [DJI30]
As is visible on weekly chart, the index remains within a well-established bullish trend as depicted by an ascending trend-channel formation. Hence, should the index manage to decisively clear the very important 18,000 psychological mark resistance, it seems more likely to extend the bullish momentum towards testing the upper trend-line resistance of the channel, currently near 18,600 mark. Alternatively, reversal back from 18,000 level and a subsequent drop back below 17,750 immediate horizontal support would possibly confirm a drop back towards 17,000 mark important support, held since Nov. 2014. Intermediate support levels are pegged at 17,450 and 17,250 region.
S&P 500 [SP500]
Similarly, the S&P 500 is also trading within a well-established up-trend but is very close to the upper trend-line resistance of an ascending trend-channel formation on weekly chart, near 2120-25 region. Should the index starts reversing from trend-line resistance or even fail to decisively clear Dec. 2014 highs, it could possibly witness some corrective move back towards 2050 intermediate support area. Further, a decisive break below 2050 intermediate support seems to trigger some additional corrective move back towards 2000 psychological mark support and eventually towards a very important support near 1970 region. Meanwhile, a decisive strength above the ascending trend-line resistance could possibly extend the up-trend in near-term towards its next resistance near 2180-85 area.
Nasdaq 100 [NQ100]
The index decisively broke above a short-term ascending trend-channel to hit record high level and now seems poised to continue the appreciating move towards testing 61.8% Fib. expansion level resistance near 4450 region. Meanwhile on the downside, 4320 level which is closely followed by the descending channel break-out point 4270-60 area, seems to act as immediate support level. Failure to hold this immediate support levels and a subsequent drop below 50-day SMA, currently near 4220 level, might negate the break-out from the channel and the index might be forced to test the lower trend-line support of the channel, currently near the very important psychological mark support near 4010-4000 zone.
Senior Market Analyst
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