Jump to content

Dow Jones, Nasdaq 100 and S&P500 index prices gain despite Powell comments


Recommended Posts

Volatile trade, following Fed Chair Jerome Powell’s comments at the Economic Club of Washington DC, has ultimately ended in gains for major US indices the SP500, Dow Jones and Nasdaq 100.

bg_us_flag_usa_america_368721284.jpgSource Bloomberg
 

 

 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Wednesday 08 February 2023 

While the Fed chair noted that inflation was continuing to ease, he also suggested that US lending rates are likely to rise further. While disinflation has begun in the world’s largest economy, figures remain a far cry off the central banks 2% target.

Expectations are that rates are still likely to reach the 5% to 5.25% range, considered a point of neutrality.

However, Mr Powell cautioned markets that the reemergence of higher inflation and strong labour reports could push rates further than markets currently expect.

Markets appeared to dismiss the ‘hawkish’ comments from the Fed, and major benchmark indices have started to extend the bullish trends we have seen this year.

S&P 500 (US 500)

 

802SP500.pngSource IG

The moving 20 (red), 50 (green)and 200 (blue) day simple moving averages (MAs) reaffirm the upward trend bias for the SP500 index. The stochastic oscillator currently labours in overbought territory. Our view is that the trend takes precedence over the overbought signal.

A shallow pullback on the index looks to have ended with a bullish engulfing candle pattern / price reversal. 4195 and 4220 provide the initial upside resistance targets from the move higher, while 4325 provides a longer-term upside resistance target. Traders who are long might consider using close below the 4085 low as a tight stop loss indication for the trade. A tight stop loss consideration is in lieu of the overbought conditions in play. Traders could also consider trailing a stop loss with the red trend line on the chart.

Nasdaq 100 (US 100)

802Nasdaq.pngSource IG

The technical indications on the Nasdaq 100 (US Tech 100) are like that of the SP500.

The moving 20 (red), 50 (green)and 200 (blue) day simple moving averages (MAs) reaffirm the upward trend bias for the index while stochastic oscillator currently labours in overbought territory.

A shallow pullback on the index looks to have ended with a bullish engulfing candle pattern / price reversal. 12900 and 13190 are the initial upside resistance targets from the move higher. Traders who are long might consider using close below the 12400 low as a tight stop loss indication for the trade. A tight stop loss consideration is in lieu of the overbought conditions in play. Traders could also consider trailing a stop loss with the red trend line on the chart.

Dow Jones Industrial Index (Wall Street 30)

802DOW.pngSource IG

The Dow Jones Industrial Index while also posting gains in the near term, reflects a slightly different trading environment right now to the SP500 and Nasdaq indices.

The short to medium term trend for the index is considered sideways, while the longer-term trend bias is considered up. The sideways range is considered between levels 32475 (support) and 34660 (resistance).

Traders of the index might prefer to keep a long bias to trades in lieu of the longer-term uptrend still in play. Long trade considerations might be on a bullish price reversal closer to range support or on a bullish upside break of range resistance.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,594
    • Total Posts
      91,778
    • Total Members
      41,847
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    MayorofBelsize
    Joined 20/03/23 10:17
  • Posts

    • DexCom Inc., Elliott Wave Technical Analysis DexCom Inc., (DXCM:NASDAQ): Daily Chart, 20 March 23, DXCM Stock Market Analysis: Looking for an overall long term correction to take place as we could be correcting the entire upmove from 2008.Looking for another leg higher before potential downside resumption. DXCM Elliott Wave Count: Wave (B) of B. DXCM Technical Indicators: Above all averages. DXCM Trading Strategy: We could look for longs with a stop below 104$. TradingLounge Analyst: Alessio Barretta Source : Tradinglounge.com get trial here!   DexCom Inc., DXCM: 4-hour Chart, 20 March 23, DexCom Inc., Elliott Wave Technical Analysis DXCM Stock Market Analysis: Here the three wave move to the upside appears clearer. Looking for sideway continuation as long as we stay above the 200EMA to then resume higher. DXCM Elliott Wave count: Wave (B) of B. DXCM Technical Indicators: In between averages. DXCM Trading Strategy: Looking for sideways continuation in wave (B).Enterwave (B).
    • Commodity Futures Market Technical Analysis Elliott Wave and Trading Strategies Content: US Bond Yields, Dollar DXY, US Gold, Silver, Copper, Lithium, Nickel, Crude Oil, Natural Gas Commodities Market Summary: Commodities are generally moving lower. Trading Strategies: Another buying opportunity may unfold across 2000 for Gold, however we need to wait for the set up, see the video. Video Chapters 00:00  US Gov Bonds 10 Yr Yields 03:58 US Dollar Index DXY  14:04 US Spot Gold 23:47 US Spot Silver 27:52 US Copper / Lithium / Nickel  38:24 Crude Oil  42:19 Natural Gas 44:38 Thanks for watching! Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com  Level Up - Test the Trial Service!    
    • Elliott Wave Analysis TradingLounge Daily Chart, 19 March 23, Theta Token/U.S.dollar(THETAUSD) THETAUSD Elliott Wave Technical Analysis Function: Follow trend Mode: Motive Structure: Impulse Position: Wave III Direction Next higher Degrees: wave (I) of Impulse Wave Cancel invalid Level: 0.706 Details: Wave II is likely to end at the level of 0.85 and a five-wave rise from this level will confirm it. Theta Token/U.S.dollar(THETAUSD)Trading Strategy: Theta Token price has recovered well from the 0.850 level but the price is still in a downtrend as it is below the MA200 line, but even then we have completed the second wave retracement and the retracement of the 0.850 level. A five-wave rally confirms this idea, making the price likely to trade above 1.302 and potentially leading to 1.784. Theta Token/U.S.dollar(THETAUSD)Technical Indicators: The price is below the MA200 indicating a DownTrend. The wave oscillators below Zero-Line momentum are bearish. TradingLounge Analyst: Kittiampon Somboonsod, CEWA Source : TradTradinglounge.com get trial here! Elliott Wave Analysis TradingLounge 4H Chart, 19 March 23, Theta Token/U.S.dollar(THETAUSD) THETAUSD Elliott Wave Technical Analysis Function: Follow trend Mode: Motive Structure: Impulse Position: Wave III Direction Next higher Degrees: wave (I) of Impulse Wave Cancel invalid Level: 0.706 Details: Wave II is likely to end at the level of 0.85 and a five-wave rise from this level will confirm it. Theta Token/U.S.dollar(THETAUSD)Trading Strategy: Theta Token Well recovered from the level of 0.850 and managed to cross the MA200 line, so the trend has a chance to turn bullish again. We also predicted the end of the second wave reversal and the five-wave rise confirming this idea. The price is likely to trade above 1.302 and could lead to 1.784. Theta Token/U.S.dollar(THETAUSD)Technical Indicators: The price is above the MA200 indicating an UpTrend. The wave oscillators above Zero-Line momentum are bullish.
×
×
  • Create New...