Technical Update For US Equity Indices: 18.05.2018

Dow Jones Industrial Average [DJI30]

While 100-day SMA confined the Dow Jones’ upside on Monday, the American equity gauge refrained to dip below 24625, which in-turn signals brighter chances of its another attempt to clear the 24875 SMA mark. Should optimism concerning U.S. economy propel the index beyond 24875 on a daily closing basis, it can then target the 25000 round-figure whereas 25150 & 25300 might become important to observe then after. On the contrary, a downside break of 24625 may avail 24500 as intermediate halt before resting around the 24430, comprising 50-day SMA. In case if the 50-day SMA fails to hold the index captive, the 24190 and the 200-day SMA level of 23950 might please the Bears.

S&P 500 [SP500]

Even after witnessing a pullback from 2742, the S&P 500’s bounce off the resistance-turned-support signals Breakout-Pullback-Continuation (BPC) formation, which in-turn favors the gauge’s additional rise; though, 2742 is undoubtedly an immediate hurdle. Given the break of 2742, the 2765 and the 2780 are likely following numbers that can entertain the buyers ahead of challenging their strength by the 2800 and the 2810 resistances. Meanwhile, the 100-day SMA level of 2710, adjacent to the support-line lying at 2690 now, might play their role of supports if the index reverses from present levels. Assuming the D1 closing below 2690 by the SP500, the 50-day SMA level of 2678 and the 2660 could be sellers’ favorite.

Nasdaq [NQ100]

Nasdaq is struggling between the 7000 – 7010 resistance-line and the 6855-65 support but broader optimism and higher low suggest the index should go up. As a result, break of 7010 can work as a trigger to portray an upside towards 7040 and then to the 7100. However, overbought RSI might come in picture near 7100 and may limit the gauge’s further rise, failing to which could highlight the 7186 and the 61.8% FE level of 7300. Alternatively, dip beneath the 6855 might not hesitate fetching the quote to 6800 whereas confluence of 50-day & 100-day SMA, around  6750-45, could gain market attention afterwards. Should pessimism breaks 6745, the 6740, the 6700 and the 6600 may appear on the chart.

Cheers and Safe Trading,
Anil Panchal