TRENDING:

XAU/USD

Silver

Can US indices sustain the upside momentum after Fridays NFP?

Ian Coleman FXStreet

Overview

US index futures have started the week on the front foot after a better-than-expected US Jobs report on Friday (Non-farm payrolls July exp. +250k act. +528K).

The markets are now drawn towards a 75 basis-point rate hike in September. Will this result in a dampening of the US stock market rally?

Technical:

I want to bring your attention to three major US Stock Indices

US30 weekly chart

US30 posted a swing low of 33035 on the week 21st of June 2021. What was support, now becomes resistance. The TL system highlights bespoke resistance between 33076 and 33102.

US30 four-hour chart

The intraday chart highlights a slightly dis-jointed bearish cypher pattern known as a BAT. Completion of the pattern is between 33053 (88.6%) and 33285 (161.8% rally from the first bullish wave). This will often result in a move to the downside.

US100 weekly chart

The TL system shows bespoke resistance at 13478 and 13520. The weekly chart highlights the potential for the next move lower, in a CD leg, to complete a cypher BAT pattern close to 7775 (88.6%) and 7466 (161.8% extension from the swing low of 11039).

US30 intraday (15-minutes)

The intraday chart highlights a 261.8% extension level at 13479 (from 13069-13225). Elliott wave enthusiasts might consider this to be completion of a 5-wave count.

US500 four-hour chart

TL system highlights resistance at 4171 and 4176. A bearish cypher BAT pattern has been completed at 4140.

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Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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