Dow Jones, S&P 500, Nasdaq 100 Technical Outlook as New Highs Come in Focus
Oct 13, 2020 (MENAFN via COMTEX) —
(MENAFN – DailyFX) U.S. Indices Highlights:
S & P 500 near the 3588 record high Nasdaq 100 leading the charge out of bullish pattern Dow Jones lagging behind a little but in breakout territory Advertisement
The S & P 500 has come rushing back with the help of a handful of technology stocks leading the way. The 3588 record high recorded in early September is only a stone’s throw away, but will we see a sustained breakout, breakout then a pullback, or a double top?
In the sustained breakout scenario, momentum will need to keep up, and given the stock market’s propensity to pull back after hitting new highs, this scenario is not without its risks. The second scenario, where we see a new high then a pullback, looks the most probable at this time. A pullback or consolidation pattern in new record territory could create a solid risk/reward opportunity.
The double-top set-up will take some time to formulate, given we would first need to see the market stop rising here very soon, then it break the recent low at 3209. A lot needs to happen for confirmation.
For now, would-be longs may be best-served waiting for a potential new high then pullback, while would-be shorts will likely be best-served standing aside for now.
Recommended by Paul Robinson Check out the Q4 EQUITIES Forecast Get My Guide S & P 500 Daily Chart (watch price action around new high)
S & P 500 Chart by TradingView
The Nasdaq 100 is the leader here with FANMAG leading the way. The index triggered an inverse head-and-shoulders pattern on Friday and exploded higher to start the week. It