Indices Technical Forecast: Bearish
- The market was hit hard on Friday, more downside anticipated
- S&P 500, Nasdaq 100, Dow Technical levels to watch in the week ahead
S&P 500, Nasdaq 100, Dow Jones Forecast for the Week Ahead
The S&P 500 was on its back foot to start last week, recovered into Jackson Hole, but was then blasted on Powell’s hawkish speech. This comes after kissing the 200-day MA and trend-line off the highs just recently.
With momentum so strong after turning off a pivotal spot on the charts, coupled with the end of summer and the worst part of the year for stocks nearing, bolsters the notion that this is the early stages off another major leg lower within the context of a broader bear market.
There aren’t any real good levels to watch in terms of support until we go aways lower, under 4000. So for now the market may bounce around, but the anticipation is that rallies will be relatively short-lived until a meaningful level is met.
The short-term outlook is set to be bearish as long as the S&P stays under 4203.
S&P 500 Daily Chart
S&P 500 Chart by TradingView
Nasdaq 100 Technical Forecast
TheNasdaq 100 is back inside the channel from early this year, and on that it is failing to find support at prior resistance via the top channel line. There may be minor support at 12662, but more meaningful support doesn’t clock in until the 12171/60 area.
Nasdaq 100 Daily Chart
Nasdaq 100 Chart by TradingView
Dow Jones Technical Forecast
The Dow Jones is turning down from around 33300 after a brief bounce. The next level of support to watch comes in at around 31900. Near-term resistance clocks in at 33364.
Dow Jones Daily Chart
Dow Jones Chart by TradingView
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—Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at@PaulRobinsonFX