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Stocks: S&P 500, Dow Jones Industrial, Small Caps, NYA – 19 June 2016

Its been some time since we posted on the blog. To recap, back in March 2016, we posted and called a bottom in the market place and gave potential upside targets. Since then the market has surpassed those levels. The article ‘Is the Market rally set to continue’ could be read here.

Lets review the charts to see where the markets are heading into the next week. Next week is an important week for the markets in general and particularly the Forex markets. We shall be posting about the Forex markets in a separate post later.

The coming week is very important due to the up coming referendum in the United Kingdom the so called Brexit vote. That is, the British people shall vote in their home country whether Britain should leave or remain in the European Union. Global markets shall be watching this historic event unfold very carefully.

For now, lets take a look at the charts. We shall be reviewing the popular U.S markets: New York Stock Exchange Index, Dow Jones Industrial Average, S&P 500 and the small cap Russell 2000.

New York Stock Exchange Index:

This is an important index that we like to follow. It represents a broad market and shares of foreign companies ADRs as well.

The market has been rising after forming a double bottom back in the February off the AB = CD pattern as shown on the chart. What is important to note is that on the weekly chart the price pulled back from the 89 WMA and also the price is below the 78.6% Fibonacci retracement. Zooming into a daily chart, there is a possibility for the price to pullback to 9800 level. Lets review the charts below.

NYA Weekly chart:

New York Stock Exchange Index weekly chart

New York Stock Exchange Index weekly chart

NYA Daily chart:

New York Stock Exchange index daily chart.

New York Stock Exchange index daily chart.

Dow Jones Industrial Average:

Lets take a look at the Dow Jones Industrial Average. This index appears to be weaker than the S&P 500. The index could pull down to the 17000 level.

Dow Jones Weekly chart:

Dow Jones Industrial Average weekly chart.

Dow Jones Industrial Average weekly chart.

Dow Jones Industrial Average daily chart:

Dow Jones Industrial Average daily chart.

Dow Jones Industrial Average daily chart.

S&P 500:

We like to take a look at the S&P 500 using the Emini futures. This index is pretty strong, last week’s sell off was abated right at the 78.6% Fibonacci retracement as shown on the chart below. Going below the 2042 level sets up a move to 1995-1990

S&P 500 (E-mini front month contract) weekly chart:

ES Weekly chart.

ES Weekly chart.

S&P 500 (ES front month contract) daily chart:

ES Daily chart

ES Daily chart

Small Cap Russell 2000 index:

Taking look at the weekly chart of the Russell 2000, we can see it bounced back up from the AB = CD pattern formation in February 2016. On the weekly chart it has formed a bearish pivot which suggests lower prices to come this is highlighted in the blue circle on the chart below.

Russell 2000 weekly chart

Russell 2000 weekly chart

Russell 2000 daily chart:

On the daily chart we can see, if the price goes below the 1108 level, it would suggest lower prices to come.

Russell 2000 Daily chart

Russell 2000 Daily chart

 

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