Tue, Jan 31, 2023 @ 16:32 GMT
HomeLive CommentsTime for a rebound? A look at DOW, S&P 500 and NASDAQ...

Time for a rebound? A look at DOW, S&P 500 and NASDAQ after another day of selloff

The recovery attempt in the US stock markets failed overnight. DOW lost another -545.91 pts or -2.13% to close at 25052.83. S&P 500 dropped -57.31 pts or -2.06% to 2728.37. NASDAQ fell -92.99 pts or -1.25% to 7329.06.

DOW move further away from 55 day EMA affirms the case that it’s in medium term correction. That is, fall from 26951.81 is corrective the up trend from 15450.56, in a less bearish case. Eventually, it might decline to 38.2% retracement of 15450.56 to 26951.81 at 22558.33 before forming a real bottoming. Nonetheless, the next line of defense come is between 23997.21 structural support and 55 week EMA (now at 24512.04). Some interim support could be seen there. But looks like there’s some more downside for the near term.

However, S&P 500 is already in proximity to equivalent support zone. That is, 2691.99 structure support and 55 week EMA (now at 2713.94).

NASDAQ is well above equivalent structure support at 6926.97. But it’s already pressing 55 week EMA (now at 7306.12).

So, the conditions are starting to be in place for an interim rebound, before weekly close or next week. (Well admittedly, it actually sounds rather trivial after the steep losses this week, stocks are ready for short covering recovery.)

 

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