US indices have been moving in an upward trend for some time. Declines caused by the coronavirus panic have been completely erased on Nasdaq and S&P 500 indices while Dow Jones still trades below year-to-date and all-time highs. This week we take a look at a technical situation on major US indices.
US100
Let’s start with Nasdaq (US100) . Looking at the daily time frame, one can see that the index has been trading in an upward trend.The panic sell-off caused by the virus was erased and the US100 painted a fresh all time high. The index is now trading at the highest level in history. According to the Overbalance methodology, the sentiment remains upward as long as the price sits above the lower limit of 1:1 structure, which is also marked by previous price reactions. The 161.8% exterior retracement of coronavirus sell-off should act as the nearest resistance.
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US100 D1 interval. Source: xStation
US500
The upward trend is also being continued by theS&P 500 index (US500).The highest level in history has been reached last night. The upward rally has slowed down, but no bearish signal can be spotted on the chart yet. If buyers manage to break above the area at 3,995 pts and stay there, an upward move towards 3,725 pts may be on the cards. On the other hand, should we see a pullback, the lower limit of the upward channel will be the first target for sellers.
US500 D1 interval. Source: xStation
US30
Dow Jones (US30) is also trading in the upward trend but this index is clearly lagging behind US500 and US100. Looking at the daily time frame, one can see that the upward move has reached a resistance area marked with previous price reactions at 28,200 pts. If buyers do not manage to break above it, the downward correction may start. The nearest support for buyers lies at the upward trendline.. On the other hand, if bulls manage to clear the resistance at 28,800 pts, the way towards all time high at 29,430 pts will be left open.
US30 D1 interval. Source: xStation5
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