Yesterday, the American indices performed differently. The S&P 500 showed mixed sentiment, but the NASDAQ 100 and the Dow Jones Industrial Average dropped significantly. Today, the NASDAQ 100 is falling, the S&P 500 is still showing mixed sentiment and the DJIA index is rising. From the data front, all eyes will be focused on the Federal Reserve that will make an update on monetary policy. As no rate hikes are insight till 2023, markets will be primarily interested in the path of asset purchases. Taking into account the tax initiatives of the White House administration, the Fed is expected to maintain the easing bias in monetary policy. Anyway, let’s start the analysis, S&P 500 first:
The S&P 500 showed mixed sentiment yesterday. First the price tested the R1 resistance level, then it dropped and tested the S1 support level, but after that it rose once again and finished the day above the Pivot Point. Today it is still showing mixed sentiment. If the buyers show their strength once again, the price might reach the R1 today and set the new all-time high. But if the bears take control over the market, the price could fall to the S1 and the EMA 200.
NASDAQ 100 dropped significantly yesterday. The price finished the session below the Pivot Point. Today it is going down even more. Right now it is below the EMA 200. If the buyers don’t generate some serious appetite soon, the price could fall below the S1 support level. But if they do, the price might rise above the Pivot Point.
Dow Jones Industrial Average
The DJIA index also dropped significantly yesterday. The price finished the day a little above the S1 support level. Today, it is rising a bit, though. If the buyers continue generating sufficient demand, the price might reach the R1 resistance level today. Buti f the bears counterattack, the price could even fall to the S1.