We were able to eke out some gains this week and we see a consolidation continuing to form in the daily charts of the indexes. Let’s take a closer look.
Dow Jones:
Daily:
The Dow Jones Industrial index continues its triangular consolidation as it builds more pressure. The sentiment of the index remains very bearish with the moving averages showing the 20 MA below the 50 MA, all of which is below a now 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 eke out some gains for this week. The 20 MA just crossed below the 50 MA going downward. We are still in a fairly new confirmed downtrend and we are still trading in a small lateral channel.
NASDAQ:
Daily:
The triangular consolidation continues to form in the index. Price is building pressure in this condolidation and we’ll see what will happen in the breakout. Overall, we still are very bearish with the moving averages showing the 20 MA below the 50 MA, all of which is below a now descending 200 MA.
Weekly:
As we take a zoom out, we see the Nasdaq had a small gain 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 crossed each other towards the downside.
S&P 500:
Daily:
The S&P 500 is still forming the Triangular consolidation and like the other indexes, the price is building pressure. 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 now descending 200 MA.
Weekly:
The S&P 500 was able to manage a gain this week from the previous week’s close. We see price continue to form a lateral trading range. We are looking bearish in this timeframe with a newly confirmed downtrend and the 20 MA crossing below the 50 MA.
We were able to see gains for this week on the 3 indexes above. Notice that the daily charts are continuing with the triangular consolidation on the daily charts and a lateral consolidation continuing to form in the weekly charts. It will be a 4 day trading week next week and I’m interested to see if the pressure cooker of the consolidations will continue or if we will see a breakout. Stay tuned and find out! 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 on Tuesday!