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This is the technical outlook of the US stock market. We will be looking at the S&P 500, the Dow (or DIA) and the Nasdaq (or qqq). Do check back on this page now and then as I will update it often.
Yesterday I did a YouTube video on the SPY and the US market. I have embedded it below. If you have the time, do watch it as I analyze the different time frames.
Yesterday there were 2 60 min bottoming tails as SPX reach the green support area. This hinted of a rise and thus the S&P continued to make records.
However, fears of trade wars spook the market and a large red bar appeared.
SPX is still finding support at the green area but if it drops below this area and drops below the 60 min 50 MA, then there could be more weakness in the market.
SPX is still trading above the rising 60 min 20 MA. Therefore we should continue to be bullish on the US market. Green support area to watch, as long as SPX stays above here then it is likely to move higher.
The S&P 500 has broken out of a 60 min ascending triangle and this pattern has more than met its target. Which explains why the S&P and the other indices are correcting a bit for now.
It also broke out of a 60 min continuation box. Looking at the measured move target which is quite similar to the ascending triangle target, the S&P 500 has also more than met its target.
Well the correct point to buy and enter most stocks was when the S&P 500 broke above the 60 min ascending triangle.
Currently the S&P is sitting at the previous high support.
I have highlighted this in green.
If the S&P manages to stay above this area, then it is likely to continue to move up and make another new all time highs. However, if it breaks below this area, you can expect more correction.
The next support area will be the green box breakout area that I have highlighted.
I think the S&P 500 has formed a 60 min ascending triangle. It broke out of this pattern and now this pattern gives us a clue that the S&P is likely to go higher.
If you take a look at the chart below, the green area I have highlighted is the top of the ascending triangle. As long as the S&P stays above the top of the pattern, the odds of it going higher is good.
Perhaps it might reach the former high. And from there the S&P might make new highs.
The S&P 500 is finding support at the 60 min 200 MA as well.
The S&P 500 managed to find support at the 60 min 200 MA. This can be a support area and if the S&P continues to stay above the 200 MA then it is likely to move higher.
Notice how the S&P 500 may be forming a 60 min triangle as well. Right now it is trying to break out higher of the triangle. If it can stay above the apex of the triangle, then the US market will continue to move up.
There is some weaknesses appearing in the major indices. Some have started to fall below the 60 min 50 MA. With President Trump telling that he will impose Tariffs on China, the market has some fears.
The S&P 500 has gone below its 60 min 50 MA triggering a correction. Watch the 60 min 200 MA for more clues if it might reverse back up or have more correction.
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