Admiral Markets
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US Equity Indices - Technical Update
On Thursday, major US equity indices (Dow Jones and S&P 500) registered their fourth straight session of gains on the back of better-than-expected economic data. Investors now await for Federal Reserve Chairwoman Janet Yellen's comments in Jackson Hole, later on Friday.
Meanwhile, here is a technical update on the major US benchmark indices - Dow Jones Industrial Average and S&P 500.
Dow Jones [DJI30]
On Thursday, the index pushed through 17,000 mark, moving closer to all-time high touched in July. The all-time closing high level around 17,100 seems to provide immediate resistance, which if breached has the potential to further boost the index towards 17,400 mark, representing 61.8% Fib. expansion level. However, should the index starts reversing from current levels and decisively drop back below 17,000 mark, it is likely to find support at 16,850 level. A break below 16,850 horizontal support area seems to exert additional pressure towards testing a very important support near 16,700 mark. Furthermore, weakness back below 16,700 support area might confirm the up-coming near-term weakness for the index and the index then seems to drift lower to retest recent lows near 16,300 area, marked by an ascending trend-line support on daily chart. 200-day SMA region near 16,430 region seems to provide some intermediate support on the downside.
S&P 500 [SP500]
Although, the index managed to close at a record high level, it seems more likely to continue facing stiff resistance at 2,000 psychological mark, also coinciding with 61.8% Fib. expansion level. However, should the index manage to conquer this important psychological resistance, it is likely to witness a sharp up-move immediately towards 2,025 resistance area and subsequently move higher in the near-term towards 2,070-80 resistance area, marked by 100% Fib. expansion level. Alternatively, a drop back below 1,980 immediate support area, is likely to immediately drag the index towards its next horizontal support near 1,950-40 zone, which if decisively broken seems to force the index to retest 100-day SMA support, currently near 1,925 region, and subsequently to test 200-day SMA support, currently near 1,875 area.
“Original analysis is provided by Admiral Markets”
On Thursday, major US equity indices (Dow Jones and S&P 500) registered their fourth straight session of gains on the back of better-than-expected economic data. Investors now await for Federal Reserve Chairwoman Janet Yellen's comments in Jackson Hole, later on Friday.
Meanwhile, here is a technical update on the major US benchmark indices - Dow Jones Industrial Average and S&P 500.
Dow Jones [DJI30]
On Thursday, the index pushed through 17,000 mark, moving closer to all-time high touched in July. The all-time closing high level around 17,100 seems to provide immediate resistance, which if breached has the potential to further boost the index towards 17,400 mark, representing 61.8% Fib. expansion level. However, should the index starts reversing from current levels and decisively drop back below 17,000 mark, it is likely to find support at 16,850 level. A break below 16,850 horizontal support area seems to exert additional pressure towards testing a very important support near 16,700 mark. Furthermore, weakness back below 16,700 support area might confirm the up-coming near-term weakness for the index and the index then seems to drift lower to retest recent lows near 16,300 area, marked by an ascending trend-line support on daily chart. 200-day SMA region near 16,430 region seems to provide some intermediate support on the downside.
S&P 500 [SP500]
Although, the index managed to close at a record high level, it seems more likely to continue facing stiff resistance at 2,000 psychological mark, also coinciding with 61.8% Fib. expansion level. However, should the index manage to conquer this important psychological resistance, it is likely to witness a sharp up-move immediately towards 2,025 resistance area and subsequently move higher in the near-term towards 2,070-80 resistance area, marked by 100% Fib. expansion level. Alternatively, a drop back below 1,980 immediate support area, is likely to immediately drag the index towards its next horizontal support near 1,950-40 zone, which if decisively broken seems to force the index to retest 100-day SMA support, currently near 1,925 region, and subsequently to test 200-day SMA support, currently near 1,875 area.
“Original analysis is provided by Admiral Markets”