Fri, Jan 21, 2022 @ 02:27 GMT
HomeLive CommentsDOW, S&P 500, NASDAQ not out of the woods yet despite relief...

DOW, S&P 500, NASDAQ not out of the woods yet despite relief rally

Major US equity indices followed other global indices and rebounded strongly overnight on easing trade war fear. DOW closed up 428.90 pts or 1.79% at 24408.00. S&P 500 rose 43.71 pts or 1.67% to 2656.87. NASDAQ also gained 143.96 pts or 2.07% to 7094.30.

However, we’d like to note that all three indices are bounded in recent consolidative pattern started last March/early April.

DOW, despite yesterday’s rise, is staying below last week’s high at 24622.26, below 55 day EMA at 24591.41. It’s also limited below near term falling trendline at around 24722.90. This 24600/700 zone is the key resistance zone to overcome for the near term. As long as it holds, current rebound is seen as part of a consolidation pattern from 23344.52. Once this consolidation completes, there will be another decline through 23344.52 to resume the fall from 26616.71. Firm of the 24600/700 zone will delay the immediate bearish case and bring stronger rebound back towards 25800.35 first.

Similarly, S&P 500 also stays below last week’s high at 2672.08, as well ass 55 day EMA at 2685.16.

NASDAQ breached last week’s high of 7112.38 but didn’t close above. It’s also limited below 55 day EMA at 7159.69.

While US stocks rebounded, they’re not out of the woods yet.

Featured Analysis

Learn Forex Trading