Summary
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US indices trading slightly lower on the European close
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US500 respects resistance around 2735
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Markets still set for sizable weekly declines
There’s been an attempted move higher seen in US stock markets this afternoon but this faded out by the European close with the major indices slipping back into the red. The rally could’ve been helped in part by the earlier Fed comments which saw the USD fall back and precious metals spike higher but as of yet, equities haven’t taken out recent highs. The US500 in particular has been playing fib levels quite nicely this week and the market is once more back around the 38.2% at 2736. An attempt to break below the 61.8% at 2685 yesterday evening led to buyers stepping in and these regions now provide possible resistance and support zones.
The US500 has been playing fib levels nicely with the 38.2% at 2736 acting as resistance and the 61.8% at 2685 offering support. A break outside these would open up the next larger move. Source: xStation
If buyers can push the markets back higher and get above the 38.2% cleanly then the 23.6% at 2767 is possible but unless this happens then the market remains under pressure. Should sellers manage to push price below the 2685 and make the move stick then a retest of the 2603 lows becomes possible and that could well prove pivotal longer term.
Looking at the weekly chart of the US30 it doesn’t look to good with the market handing back almost all of last week’s gains. It is worth pointing out that there is still some way to go before the markets closes for the weekend and on the plus side there is a sizable week below the W1 candle at present. Overall it could be said that price remains a bit mid range within this with lows of 24800 possible support and below that 24085. Longs would really like to see price above last week’s high of 26280 and if that does occur than the all-time high of 26960 would be on tap.
The US30 is set for a sizable weekly decline but the longish wick currently below price could be seen as a bit of a positive. The market is hovering around the 8 and 21 EMAs and they are closely bunched. Source: xStation
