- Major indexes including Dow Jones index and S&P 500 lost points today
- All the key sectors were red. A little concerned issue
- Market uptrend is intact and bull has complete on the market. No signs of major weakness in the market.
Tuesday market had a rough day as market index Dow jones and s&p 500 both were down .75% and 1.01 % consecutively. One exception to this down day was all the key sectors were red. This is not good for the market. Market index will go up and down as market moves up. A red day in market tops is nothing for the market existing uptrend. However, all the sectors are red in market down day is a kind of warning sign for the US stock market.
Dow Jones Index:
Dow Jones index was down .75% percent today or 133 points and closed at 17603. Dow Jones was in the upper band range from February 16 2016 till today and was tried to cross the upper band but failed. A pull back was due in Dow jones index as we did not see a pull back since February 11. Dow jones index is also on the resistance zone of 17500 to 18000 points. As Dow jones index chart shows many pivot points in this zone, small resistance was expected in every pivot points. As Dow approached to17800 point which is also a pivot point, a small pull back is expected.
However, it does not change anything about market outlook and uptrend is still intact. Dow jones index chart shows possible support zone for Dow jones index is 17000 points to 17200 point. This will not be surprising if Dow Jones comes down to 17000 points and start to move upward to make new high. Technically this pull back to 17000 points will be healthy as market uptrend will remain intact and market will adjust its current overbought condition.
S& P 500
S& P is down 1.01 % today. SPX was the market leader of February 2016 move and current uptrend. Tuesday s&p 500 closed makes s&p 500 chart little bit ugly. Because Friday strong candle stick with high close now look like hanging man in the chart. However, uptrend in the chart is intact and this is expected that index may pull back to 2000 points as sandp 500 long term resistance line turns support line is 2000 points area. Another thing is sandp 500 200 day simple moving average was at 2000 points. Index may retest its 200 day moving average before its start its next upward move.
However, 2000 points range is very important for both bull and bear. If S&P 500 index failed hold above the 2000 points area, uptrend may feel pressure for the short run. On the other hand, if index just pull back to 2000 points area and got support by 200 day moving average and existing trend line, S&P 500 may start another upward move to the upside.
QQQ chart looks different than s&P 5oo index. QQQ had bad reputation for lagging the current rally. Now qqq chart looks really strong. ETF Friday opened above the resistance line and closed at the high change the chart outlook. Last 2 days as all index were losing values hardly, qqq had only doji days. This also shows qqq relative strength in comparison to the major index Dow Jones and s&p 500.
Bottom line: Stock market still has very strong uptrend and bull has complete control on the market. A small pull back is healthy for the market next up move. However all the sector red may be reason for a little bit concern.NOTICE: This article was based on research of stock market information and other sources of information, found both online and in print media. Neither tradingninvestment.com nor any of its owners, contributors, officers, directors, consultants, or employees take responsibility for the accuracy of the information contained in this article or the accuracy of the information on which this article was based. tradingninvestment.com was not compensated by any of the companies mentioned in this article for the preparation of this material, nor were the materials approved by the companies which were mentioned.