NDX, DJI and SPX Technical analysis November 2019
$NDX (Nasdaq 100 Index, Weekly Chart)
NDX – bullish performance and rapid growth since the financial crisis. These are the things to notice on this one:
-The current pump from 7700 points to 8200 has not been recognized as a trend yet by ADX.
-The latest candle is so-called “Doji-candle” which is usually a bullish sign
-Ichimoku clouds predicting uptrend. Ichimoku’s blue line (conversion line periods) has been the support on the weekly chart as we can see in the picture. When the price goes above the blue line it will continue pushing higher highs and when falling under the blue line it will start lacking on movement.
On NDX I predict it will hit 8450 points (current R2 level of Pivot) in the next two weeks and then fall a little towards 8000~ points.
DJI is looking quite a bit like NDX.
In this picture, we are looking at a monthly chart on DJI. The price channel for DJI’s movement has been 24100-26300 for almost two years for now. A couple of months ago, it broke the channel and went above the channel’s trendline. There is strong selling pressure on 27349 points which is the most upper trendline drawn. ADX is showing a number of 20 which means DJI is currently on a weak trend and with these factors, I will think the trend is towards the skies. Most recent pivot-resistance has been broken a couple of months ago.
Most likely DJI will make a new price channel where it goes for the next months-to-years. This one is a bit harder because of the most recent trendline has been broken already. I would say that 27225-28300 (old R2-pivot) could be the next price range of DJI judging by the old resistances and most recent selling pressures.
S&P 500 has been hitting ATHs every week.
It will continue pushing upwards for sure. We have to remember the fact that it went very bearish last Christmas (-16%) and usually the history repeats itself. Probably not that harsh dip but dip anyways. The trend is there again on this one.
The light blue line is the resistance line. It has predicted the price movement correctly most of the time so I’d trust the line on this one again. So for the S&P close future, I guess it will touch the middle red line (by the new year) which could mean -7% in near future. In the first months of 2020, it will push close to 3200 points range by ease.