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Nasdaq And S&P 500 Upward Trending Channels May Find Resistance Ahead
Written by John Rivera, Analyst
CFDtrading.com provides free news, trading resources, and market analysis to the trading community.
Last week’s update was “today’s huge rally is the bulk of a 4th wave correction. Levels to watch for a top and reversal are 9672 and 10150. Price ideally remains below 10828.” Elliott channel resistance is at 10150 (61.8%) on October 23 and 9672 (50%) on November 6. This 4th wave correction that is underway now could take the form of a triangle, so expect range conditions over the next several weeks before the next bear leg takes hold.
The Dow briefly broke through resistance at the 38.2% Fibo extension of the 11,468 – 7,882 decline, but retraced back below it. Nevertheless, an upward trending channel is developing and another break could see a significant move higher to test the 9,500 price level. If resistance holds then a retest of support is possible.
The S&P is virtually the same as the Dow. Expect a top and reversal near 1050 or 1107. Price remaining below 1200 keeps us confidently bearish. With regards to time, Elliott channel resistance intersects with the 50% retracement at 1050 on November 4.
The S&P 500 has also started to develop an upward trending channel. Resistance lies ahead at the 38.2% extension of the 1,265 – 839 decline.
Like this Article? Want to see our technicals for the Nasdaq? Click HERE for the final part of this article.
CFDtrading.com provides free news, trading resources, and market analysis to the trading community.
Written by John Rivera, Analyst
CFDtrading.com provides free news, trading resources, and market analysis to the trading community.
Last week’s update was “today’s huge rally is the bulk of a 4th wave correction. Levels to watch for a top and reversal are 9672 and 10150. Price ideally remains below 10828.” Elliott channel resistance is at 10150 (61.8%) on October 23 and 9672 (50%) on November 6. This 4th wave correction that is underway now could take the form of a triangle, so expect range conditions over the next several weeks before the next bear leg takes hold.
The Dow briefly broke through resistance at the 38.2% Fibo extension of the 11,468 – 7,882 decline, but retraced back below it. Nevertheless, an upward trending channel is developing and another break could see a significant move higher to test the 9,500 price level. If resistance holds then a retest of support is possible.
The S&P is virtually the same as the Dow. Expect a top and reversal near 1050 or 1107. Price remaining below 1200 keeps us confidently bearish. With regards to time, Elliott channel resistance intersects with the 50% retracement at 1050 on November 4.
The S&P 500 has also started to develop an upward trending channel. Resistance lies ahead at the 38.2% extension of the 1,265 – 839 decline.
Like this Article? Want to see our technicals for the Nasdaq? Click HERE for the final part of this article.
CFDtrading.com provides free news, trading resources, and market analysis to the trading community.