S&P 500 (SPX), Dow Jones (DJI), Nasdaq Composite (IXIC) Technical outlook WC
|S&P 500 (SPX) bears in control bulls need to reclaim 3860
S&P 500(SPX) had two attempts to break through the critical resistance trendline highlighted in the daily chart in the last two weeks and failed. Friday's session closed at 3852, below 3860 crucial support zone, and will be closely watched by institutional traders in the next session. Bears are currently in control, indicated in the volume spike, and will try to drive prices down to the next critical zone at 3748 if buyers fail to reclaim 3860.
Dow Jones (DJI) is on the verge of collapsing 18/12/2022
Dow Jones (DJI) fell below the crucial support line projected on the daily chart in Friday's trades following multiple failed attempts to break out at August 2022 highs. The index is currently on the verge of collapsing based on the previous activities around this area - May, June, and August 2022 and will need to hold above 33264 to avoid a major sell-off. Critical support estimates at 32514, 32056 and 31764
Nasdaq Composite Index(IXIC); A potential continuation of technical downtrends on display in the daily time frame
Two technical patterns need to be observed in the daily chart. The bearish flag pattern outlined in blue and the long-term price channel developed during the Covid-19 pandemic both aligned with the 10353 support line, which could trigger a sell-off.
The index survived the previous pullback to the 10353 support line but will it survive this time? 10353 and 10038 estimates are considered critical support levels according to the technical indicator. 10038 is the last line of defence; fail at this level, and the index could fall to 9518 and 8486.
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