With a long upper shadow, Dow finished yesterday after failure to take out SMA20 at 16040.00 as seen on the provided daily chart.
Additionally, traders have taken the index below 23.6% Fibonacci at 15905.00, which forced RSI to stabilize below the value of 50.00.
ADX remains negative and thus, we suggest bearish resumption today as far as 16040.00 hold with a daily closing.
Support: 15775.00-15625.00-15500.00
Resistance: 15905.00-16000.00-16125.00
Direction: Bearish
After attempting to trade above 23.6% Fibonacci at 1867.00, S&P 500 has moved strongly to the downside, influenced by the strong resistance it faced at 1880.00 where SMA20 exists.
Despite the mild weakness on ADX, it remains negative; whilst RSI continued to trade below the value of 50.00.
Henceforth, we will be bearish and a break below 1804.00 may cause another sharp collapse.
Support: 1820.00-1804.00-1780.00
Resistance: 1850.00-1862.00-1875.00
Direction: Bearish