Dow Trading Range Remains Weak; SPX Futures Declines
ICN.com | May 24, 2016 05:49AM ET
Since the opening of this week, Dow didn’t show the move that we can depend on it to suggest price behavior since trading range remains very weak.
However, trading below the sloping neckline of the classical structure in addition to stability below moving averages 20 and 50 could be a negative signal, but it need confirmation by trading below 17420.00 support to open the door towards 17285.00, which is the main support over short-term basis.
To recap, we see inappropriate risk versus reward ratio and we remain neutral now.
Support: 17420.00-17360.00-17300.00
Resistance: 17550.00-17620.00-17680.00
Direction: Neutral
The bullishness on S&P 500 Futures has been stopped by SMA20 at 2055.00 regions where we witnessed slight downside move again.
RSI is turning mildly downwards after re-testing the value of 50.00, but ADX can’t give off reliable signal until now.
From here, we will be neutral at least during the European session; noting that, a break below 2032.00 will expose 2027.00 initial support and may activate the bearish classical pattern.
Support: 2032.00-2027.00-2022.00
Resistance: 2055.00-2062.00-2070.00
Direction: Neutral
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