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Index Analysis
Time Frame : Daily Chart
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Watching for Weakness in Key Indexes
Even though it may be hard, we always trade what we see not what we think…meaning stay with the trend until key support is broken. The charts below show that the trend up is still in tact and it is not time to panic….YET!!
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Index : ASX200 Index
Current Price : 5926
The ASX200 is at a tipping point being held between the 6200 resistance level and 5850 area. Price is no longer on the rise and the risk is now of a correction lower. If price pushes below 5850, then we will have some issues and buyers will be racing for the doors.
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Index : DOW JONES Index
The DOW is still in an uptrend and within striking distance of new all time highs. The move down in the US session has triggered some concern but as long as the Index does not break down through 27400, buyers will still be active.
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Index : SP500 Index
The SP500 is being lead by the NASDAQ and, like the DOW, remains in an uptrend. The move down, although may be a reason for concern, could be a flush out of late buyers before continuation higher. If a break down below 3390 plays out then look for a shoulder entry short. Until then, the trend is your friend…shaky or not.
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Index : NASDAQ Index
The NASDAQ is the key for me as the main drivers for the overall market strength into Indexes has been big tech. Like the others ie DOW and SP500, price has not broken the trend up. The move lower may just be a bit of profit taking prior to the employment data out tonight as many players still expect further stimulus which will be supportive to keep the party going.
