US Stock indices technical forecast for the week ahead Indices and stocks last week were divided, but the Nasdaq 100 soared higher. The Dow Jones underwhelmed, while the S&P 500 also rose.
US stock Indices Fundamental brief
US Equities Experience Technical Rebounds as Markets Analyze FED, Bank Reassurances
US equities rose as a result of the $30 billion show of support and numerous guarantees from the US Federal Reserve Bank. Including its promise to purchase bank bonds at par value.
There is still a sizable amount of risk to the downside because the Fed has yet to determine whether or not to raise rates at all next week. Although the Fed is further along in its battle against inflation and may have more room to talk about leaving rates steady next week.
US STOCK INDICES TECHNICAL FORECAST
Outlook for the Nasdaq 100 is neutral
The Nasdaq 100 experienced its best 5-day showing since Nov last week, rising 5.65 percent. Technically, the index crossed over a short-term falling channel. Providing a neutral view for the coming week.
It is not yet bullish because prices are still under the tested 12846 – 12987 support level. The 61.8% and 78.6% Fibonacci extension levels. Which are located at 13165 and 13534, would be exposed if a breakthrough over this zone were to be confirmed. Keep a close watch on the 50-day Simple Moving Average in the event of a turn lower. (SMA)
Bearish S&P 500 Outlook
Last week, the S&P 500 rose 1.27%. The upside progress was comparatively slow in comparison to the Nasdaq 100. Technically speaking, the prognosis is still negative. This is due to the fact that prices are still contained by a declining channel.
Additionally, last week’s important resistance was the 50-day SMA. Pushing above resistance would offer growing neutral prospects, putting the focus on the Feb top at 4208. Besides, stretching losses shifts attention to the channel’s bottom.
Neutral Dow Jones outlook
The Nasdaq/Dow percentage rose to its highest level since 2008 last week, with the Dow Jones largely remaining unchanged. While the Dow stays within the boundaries of a falling channel, prices were unable to clear the key 31738-32017 support zone. Reinforcing this range as key support.
A bearish view would become possible if the price extended lower. Besides, a bounce toward the channel’s top might be visible, which would provide a more neutral perspective.
For prices to give any real potential for upside, they might need to break through the ceiling. Watch out for the 31153 61.8% Fibonacci retracement mark below.
