S&P 500, Dow Jones, and Nasdaq 100 Prices Retest Broken Trend Support

U.S. Indices Technical Highlights:

  • SP 500 testing broken channel, bigger trend-line, 200-day higher
  • Dow Jones reversed around 200-day, April trend-line
  • Nasdaq 100 hit 2016 trend-line, just shy of the 200-day

With global stocks falling sharply, see how recent events fit into our outlook for the remainder of the year in the Q4 Global Equities Forecast.

SP 500 testing broken channel, bigger trend-line, 200-day higher

In what has been very volatile trade lately, markets are showing their bear market-like tendency to undergo swift declines followed by sharp rebounds. Will the most recent 2.5 day ramp up last or fade into another round of cascading prices?

With the bounce since Monday, indices are testing prior breakdown levels. The SP 500 faded late-day yesterday, posting a semi-bearish reversal, from around the lower parallel of a channel running higher since February.

Pressure could come in quickly from here and at the least in the very short-term fill yesterday’s gap down to 2682 (It’s ‘only’ 30 handles away). If sellers don’t show up in earnest soon, another push higher could be in store before ending with another downdraft. A break of yesterday’s high of 2737

Article source: https://www.dailyfx.com/forex/technical/home/analysis/spx500/2018/11/01/SP-500-Dow-Jones-and-Nasdaq-100-Prices-Retesting-Broken-Trend-Support-PRtech.html