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Dow Jones 30 and NASDAQ 100 markets rally during the week, but show signs of resistance

By:
Christopher Lewis
Updated: Apr 21, 2018, 08:48 UTC

US stock markets rally during the week but pulled back enough to form shooting stars in both the Dow Jones 30 and the NASDAQ 100. That’s interesting, because it shows that we are perhaps struggling to go higher, and we could see a bit more downward pressure. However, we also have plenty of support underneath.

Dow Jones 30 weekly chart, April 23, 2018

Dow Jones 30

The Dow Jones 30 rallied during the week, reaching towards the 25,000 level, but then pulled back to form a bit of a shooting star on the weekly chart. That’s a very negative sign, and I think that we could pull back from here. However, there is a significant amount of support below, and I think that although we will probably fall from here, it is more than likely going to be value that people will be willing to take advantage of at lower levels. A breakdown below the 23,000 level unwinds this market drastically. Otherwise, we could turn around and break above the 25,000 handle and go much higher.

NASDAQ 100

The NASDAQ 100 rallied initially during the week, breaking above the 6800 level one point, but then turned around to form a shooting star. The shooting star course is a negative sign, but I think there is also a significant amount of support underneath, not only at the 6500 level, but also the uptrend line. I believe that every time we pull back, the buyers will be interested in buying this market. However, if we were to break down below the 6400 level, the market will probably go to the 6200 level, and then possibly the 6000 level. That would be a break of a major uptrend line, and in fact very negative. The alternate scenario of course is breaking above the top of the candle for the week and going to 7000.

Dow Jones 30 and NASDAQ Index Video 23.04.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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