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Dow And S&P 500 Futures Remain Bearish

Published 02/11/2016, 05:13 AM
Updated 07/09/2023, 06:31 AM

With a long upper shadow, Dow finished yesterday after failure to take out SMA20 at 16040.00 as seen on the provided daily chart.

Dow Jones 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.

S&P 500 Daily Chart

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

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