US Stocks Launched Attack on EMA 200, What's Next?

Yesterday's session was really interesting. The American indices dropped strongly at first, but then, in the afternoon the price rose significantly.

Yesterday’s session was really interesting. The American indices dropped strongly at first, but then, in the afternoon the price rose significantly. In the end, two of them finished the session almost exactly at the same level where they began and extremely close to the EMA 200.

Today, the prices were going up during the first hours of the Asian trading session, but after that, they started falling. What can they do now? Let's try to answer that question in an analysis.

S&P 500

Yesterday, the S&P 500 fell to the S2 support level, but after that, during the American trading session, the price managed to rise strongly and even finished the day above the EMA 200. Today, at first it continued going up, but then it dropped.

At the moment the bulls are trying hard to hold the price above the EMA 200, but it’s not easy. If they do it successfully, the price might test the R1 resistance level or even reach the R2 today. However, if they fail, the price might even drop below the S1 and test yesterday's lows.

NASDAQ 100

NASDAQ 100 also dropped strongly yesterday before noon and then managed to rise, but it was weaker, and the price finished the day significantly lower than when it started. Today, it looks just like the S&P 500, though - at first it continued going up, then it dropped.

At the moment the buyers are trying to return above the EMA 200. If they do it successfully, the price might test the R1 resistance level or even reach the R2 today. But if they fail, the price might go down to the S1 support level and test yesterday’s lows.

Dow Jones Industrial Average

The DJIA index looked pretty similar to the S&P 500 yesterday. However, it was a bit weaker, the price fell below the S2 support level and finished the session slightly below the EMA 200. It managed to breach it during the first hours of the Asian trading session, but after that, it dropped once more and it is still below it right now.

If the buyers are strong enough to generate some sufficient demand, the price should attack it soon though, and maybe even test the R1 resistance level today. However, if they are not, the price might drop below the S1 support level and even test 28,000.

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