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Dow Jones And S&P 500 Forecast: May 19, 2016

Published 05/19/2016, 05:42 AM
Updated 07/09/2023, 06:31 AM

Dow is still respecting the bearish scenario after achieving a daily closing below 17500.00 psychological, which represents the area of the sloping neckline.

Dow Jones Chart

Yesterday, SMA20 and SMA50 overlapped bearishly for the first time since December 2015, which is a new strong negative catalyst that should assist bears to resume their southern trip.

We hold onto our bearish outlook, and a new break below 17360.00 will accelerate.

Support: 17420.00-17360.00-17300.00

Resistance: 17500.00-17550.00-17500.00

Direction: Bearish

S&P 500 also continued to slump, re-testing the key horizontal support level of 2027.00 as seen on the provided daily chart.

S&P 500 Chart

A break below that support will be a huge bearish signal, protected by the coverage and the overlap of moving averages 20 and 50.

Support: 2032.00-2027.00-2022.00

Resistance: 2045.00-2050.00-2055.00

Direction: Bearish

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