This week, we lost what we gained last week and we are starting to consolidate. Let’s take a closer look.
Dow Jones:
Daily:
The Dow Jones Industrial index had a down week from its highs that it formed last week. We also have a small consolidation (Possibly a triangular shaped one) forming. We’ll have to keep a close eye out for what is to unfold in the following weeks. Its possible to see a double bottom next week but we will not know until price reveals itself next week. The sentiment remains very bearish with the moving averages showing the 20 MA below the 50 MA, all of which is below a soon to be descending 200 MA.
Weekly:
As we zoom out to see what is going on the in the weekly price action of the Dow, we see that the index pretty much erased all its gains from last week. We are still in a fairly new confirmed downtrend but we have started to trade in a lateral channel.
NASDAQ:
Daily:
The Nasdaq had a down week from its highs from last week also. It does look like there is a triangular consolidation forming in the index where it bounced off the consolidation support and found a little strength in the last 2 days of trading. Overall, we still are very bearish with the moving averages showing the 20 MA below the 50 MA, all of which is below a soon to be descending 200 MA. Let’s see what the next week will unfold.
Weekly:
As we take a zoom out, we see the Nasdaq erased what it gained this week. We are still in a newly confirmed downtrend but we seem to be trading in a lateral fashion. The 20 MA and the 50 MA have met each other at the end of this week and it will be interesting to see where we will end up with 1 more week to add to the mix.
S&P 500:
Daily:
The S&P 500 had a similar response with both the Nasdaq and the Dow where we are seeing a triangular consolidation forming. Let’s see where this consolidation takes us in the following week. We are still very bearish in the market with the moving averages showing the 20 MA below the 50 MA, all of which is below a soon to be descending 200 MA.
Weekly:
The weekly chart looks very similar to the Nasdaq’s weekly chart where we see the erasing of gains from the prior week. We also see a lateral trading range in this timeframe. Let’s see what next week has to tell us! We are looking bearish in this timeframe with a newly confirmed downtrend and the 20 MA crossing below the 50 MA.
This week we saw all the gains from last week get erased this week. Notice that the daily charts are showing a triangular consolidation occurring and a lateral consolidation starting to form in the weekly charts. It will be interesting to see where we stand next week. In the meantime, here is a summary:
Intermediate Trend:
Dow - Down
NASDAQ - Down
S&P 500 - Down
Long Term Trend:
Dow - Down
NASDAQ - Down
S&P 500 - Down
Be careful and Trade Safely tomorrow!