Major Indices Latest:
- Dow drifts back from high
- Nasdaq 100 sits at record
- Hang Seng surges in promises of state support
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Dow Drifts Back from High
Friday’s record high gave way to some modest downside on Monday, though it can hardly be said that there was much selling momentum.
Short-term trendline support from mid-January was tested on Monday. A close below this line would mark a short-term bearish development, and potentially open the way to the 50-day simple moving average (SMA).
Before this, the price will test the previous high from late December and early January at 37,815.
Dow Daily Chart
Source: IG, ProRealTime, Prepared by Christopher Beauchamp
Nasdaq 100 Sits at Record
The index shrugged off some slight weakness on Monday to push higher, moving back to its record high.
For the time being buyers continue to support the price, after a bounce last week from 17,168. A close below this might open the way to the late December high at 16,978, and then down to the 50-day SMA.
Nasdaq 100 Daily Chart
Source: IG, ProRealTime, Prepared by Christopher Beauchamp
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Hang Seng Surges on Promises of More State Support
The index enjoyed an impressive rebound overnight, rallying back towards the late January high, as Chinese markets were bolstered by news of more state support.
The area around 16,285 has been a battleground since December, with recent strength fading as it entered the key zone of price action. A close above 16,400 in coming days could point the way to more gains, in the direction of 17,000 and the late December high.
A close back below 16,000 would indicate that the sellers have regained control, putting the 15,000 area in play once again.
Hang Seng Daily Chart
Source: IG, ProRealTime, Prepared by Christopher Beauchamp