Summary:
- Equity indices launched the week higher on the back of G20 optimism.
- S&P500 (US500) reaches new ATH in a pre-session trading
- NASDAQ and Dow Jones hover near record highs
Equity indices opened higher on Monday. US500 reached new ATH in the pre-session trading while Dow Jones And Nasdaq lag behind a bit. However, the two indices also trade close to their record highs therefore an attempt to break above may be made late today. Starting with D1 interval on US30, we can see that the index continues an upward move started at 3rd June. As long as the price stays above the 26700 pts handle, bulls seem to be in favour. A break back below the aforementioned level could be the first signal of a potential, deeper sell-off.
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Source: xStation5Situation on the US100 chart looks very similar. The price hovers close to the all time highs. The index is within striking distance of the record high therefore we may see a test of it as soon as today.. Investors are at a crossroads as the index reached key resistance level. However, one should keep in mind the trend is upward and playing against the trend seldom is a wise move. Note that in case a break higher is delivered with a significant momentum, bulls may get encouraged and pace of the move higher could accelerate.
Source: xStation5Taking a look at Nasdaq (US100) at H4 interval, the upward trend is apparent as well. There was not a single major correction since the beginning of the current upward impulse (3rd June). However, price saw positive reaction to the range of the biggest correction ( yellow rectangle) and pushed towards new highs later on. Attention of the bulls will now be drawn to the 7875 pts handle, the previous record high. In spite of whether a break higher is delivered or not, the upward trend seems to be intact as long as the index trades above the 7600 pts handle.
Source: xStation5
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