U.S. Major Indices: Mired In Consolidation Zones
Candy Matheson | Apr 15, 2018 12:01AM ET
THE BARE FACTS:
- Friday night's joint US/British/French military operation in Syria is over and no amount of arguments for/against it will change that fact.
- Prior to that and as at Friday's close, the US Major Indices—including the Dow, S&P 500 and NASDAQ Composite—were still mired inside their respective consolidation zones near their 50-day MA, as shown on the following 1-year and 2-month daily charts.
SO, HOW WILL MARKETS REACT?
In the short term, watch for any 20 MA crossover (and hold) above the 50 MA on any market rally next week and beyond, as one signal of potential sustainable equity strength in the weeks ahead.
Otherwise, a drop and hold below this year's lows could produce quite a plunge in this market.
In either event, keep an eye on the rate-of-change indicator for signs of an acceleration of the speed in either direction (I've shown an input value of one day on these charts, so you get the idea).
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.