(MENAFN – DailyFX) S & P 500/Dow Jones/Nasdaq 100 Technical Highlights: S & P 500 backing down from resistance to 200-day Dow Jones so far the weakest of the major indices Nasdaq 100 pulling back, but holding up the best Check out the forecasts for Global Stock Indices and other markets on the Trading Guides page .
S & P 500 backing down from resistance to 200-day The market is as weak as it’s been since the December low, and not without warning as the S & P 500 pulls off solid resistance in the vicinity of 2800/17. While the past few days have brought with them the most aggressive selling in a while, it hasn’t been overwhelming.
Is this a shallow corrective pullback, or will we soon see sellers show up in earnest? The answer to that might lie in the next attempt to rally. Failure to see buyers emerge merely a pause in the decline off the highs could be the hesitation that leads to a stronger decline. Even a little bump higher that rolls over and makes a new low below whatever low we soon carve out would be a good indication that a larger decline is underway.
However, a push higher with few sellers and avoidance of rolling over will have the 2800/17 area back in focus. This will remain a significant ceiling for the market, and if a larger advance is to continue this zone will be an important threshold to overcome. Shorts might find it as another back-stop for good risk/reward bearish bets.
Macro-techs, with all the wild swings of the past 15 months suggest the market could be undergoing a major long-term topping process. A couple of scenarios I’ll soon go into further detail include finding a high right about now (bringing into