Dow Jones And S&P 500 Forecast: May 19, 2016
ICN.com | May 19, 2016 05:42AM ET
Dow is still respecting the bearish scenario after achieving a daily closing below 17500.00 psychological, which represents the area of the sloping neckline.
Yesterday, SMA20 and SMA50 overlapped bearishly for the first time since December 2015, which is a new strong negative catalyst that should assist bears to resume their southern trip.
We hold onto our bearish outlook, and a new break below 17360.00 will accelerate.
Support: 17420.00-17360.00-17300.00
Resistance: 17500.00-17550.00-17500.00
Direction: Bearish
S&P 500 also continued to slump, re-testing the key horizontal support level of 2027.00 as seen on the provided daily chart.
A break below that support will be a huge bearish signal, protected by the coverage and the overlap of moving averages 20 and 50.
Support: 2032.00-2027.00-2022.00
Resistance: 2045.00-2050.00-2055.00
Direction: Bearish
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