Dow Edges surge to a record high was followed by some minor downward movement on Monday, although the selling pressure remained relatively subdued.
Short-Term Outlook for Dow
On Monday, the Dow Edges tested the support of a short-term trendline dating back to mid-January. A decisive close below this trendline could signify a short-term bearish shift and potentially pave the way for a test of the 50-day simple moving average (SMA). Prior to reaching the 50-day SMA, the price is likely to encounter resistance around the previous high from late December and early January, situated at 37,815.
Source: IG, ProRealTime, Prepared by Christopher Beauchamp
Nasdaq 100 Maintains Record Levels
Despite some minor weakness observed on Monday, the Nasdaq 100 managed to push higher, returning to its recent record high.
Buyers have continued to support the price, evident from a bounce last week around the 17,168 mark. However, a close below this level could signal a potential retreat towards the late December high at 16,978, followed by a possible test of the 50-day SMA.
Source: IG, ProRealTime, Prepared by Christopher Beauchamp
Hang Seng Index Surges Amid State Support News
The Hang Seng Index witnessed a notable surge overnight, rallying towards the late January high. Chinese markets received a boost from reports of increased state support.
Around the 16,285 level, the index has faced significant resistance since December. Recent strength waned upon entering this crucial price zone. A conclusive close above 16,400 in the coming sessions could signal further upside potential towards 17,000 and the late December high. Conversely, a drop below 16,000 would suggest a resurgence of selling pressure, potentially targeting the 15,000 area once again.
Conclusion
While the Dow experienced slight downward pressure and the Nasdaq 100 maintained its record levels, the Hang Seng Index surged on reports of increased state support. Market participants will closely monitor key levels and developments in the coming sessions to gauge the direction of these indices.