US Stocks Rise Following Significant Drop

The index looks volatile and shows a different direction in the Asian session. What is the outlook?

Surprisingly, when a rather boring session was coming to an end, the American indices suddenly dropped heavily in the evening. In consequence, all three of them finished the day significantly below the EMA 200. From the start of today’s Asian trading session, the situation changed once again.

The prices started to go upwards and they continued to move in that direction this morning. How far can they go? Let’s try to find out in the analysis, S&P 500 first:

S&P 500

After a complete disaster yesterday evening, the S&P 500 is strongly going up. It’s already above the EMA 200 and the Pivot Point, but those levels haven’t stopped the buyers. Their plan is to attack the R1 resistance level or maybe even test 3400. However, the bears may try to counterattack faster, so we may see a pullback to the EMA 200 and Pivot Point as well. If they manage to do that, the price could even return to the levels from last night.

NASDAQ 100

The NASDAQ 100 fell even more heavily yesterday evening. But, since the beginning of the Asian trading session, the price is going up. It's already above the Pivot Point and probably will attack the EMA 200 pretty soon. If the buyers do it successfully, the price might even test the EMA 200. However, if they fail, the price could not only fall below the Pivot Point but return to 11200.

Dow Jones Industrial Average

The DJIA index once again looks almost exactly the same as the S&P 500 today. Yesterday evening, the price dropped heavily, but since then, the bulls took control over the market. It’s already above the EMA 200 and the Pivot Point, but those levels haven’t stopped them.

It’s likely that they will also attack the R1 resistance level. However, we don’t know when the bears are planning to make their move. If they do it finally, the price might not only fall to the Pivot Point and EMA 200 but also return to the levels from last night.