Dow Jones And S&P 500 Forecast: May 18, 2016
ICN.com | May 18, 2016 05:07AM ET
Dow collapsed again yesterday, engulfing the previous daily candlestick after re-testing moving averages 20 and 50, as seen on the provided daily chart.
As we said earlier, a stable move below 17550.00 and 17500.00 will be a negative signal - and the index started to stabilize below them.
RSI has been resisted at the value of 50.00, while ADX needs a confirmation with a break below 17420.00 support, but we will be bearish based on breaching support levels.
Support: 17420.00-17360.00-17300.00
Resistance: 17550.00-17500.00-17620.00
Direction: Bearish
S&P 500 also turned lower, clearing 2050.00 and 2043.00 regions, and it is currently attacking the classical line.
A break below 2027.00 will activate the previously proposed head and shoulders pattern.
We will be bearish based on the strength of the moving averages resistance.
Support: 2038.00-2027.00-2022.00
Resistance: 2050.00-2055.00-2063.00
Direction: Bearish
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