Audrey Deschenes
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U.S. markets spike from major technical support

Focus: Crude oil’s resurgence, Gold’s major test, Transports, Financials, Apple challenges uncharted territory

The U.S. markets’ price action remains distinctly technical, and on balance, bullish.

Consider that the Dow Jones Industrial Average has rallied sharply from its 200-day moving average, while the S&P 500 Index has maintained major support at the January low.

Before detailing the U.S. markets’ wider view, the S&P 500’s hourly chart highlights the past two weeks.

As illustrated, the S&P has rallied sharply from major support, rising to the September peak.

This area remains an inflection point, while the S&P’s next notable resistance spans from 2,050 to the 2014 close of 2,058.

Meanwhile, the Dow industrials’ near-term backdrop remains weaker.

Still, the index has rallied sharply from the 200-day moving average, also rising to the September peak.

Near-term resistance holds around 17,450, and is followed by additional overhead at the 17,600 mark.

And the Nasdaq Composite’s near-term backdrop is slightly stronger.

This is the only major benchmark that’s maintained a posture atop the September peak.

From current levels, initial resistance holds around 4,710, and is followed by the 2014 close of 4,736.

Widening the view to six months adds perspective.

On this wider view, the Nasdaq continues to whipsaw within a one-month range.

Within the range, its 50-day moving average currently rests at 4,710, matching near-term resistance on the hourly chart.

Moving to the Dow Jones Industrial Average, it’s survived a major technical test this week.

Specifically, the Dow has rallied from its 200-day moving average, currently 17,066, rising to close just above an inflection point at the September peak.

Its sharp rally from the 200-day is constructive, preserving a tenuously bullish bias.

And the S&P 500 Index has also rallied from major support.

In its case, the January low rests at 1,988, just above the 200-day moving average, currently 1,976.

The S&P has bottomed this week at 1,981, before reversing sharply back to the range.