?After two days of heavy losses, the index still remains above its previous highs, as investors brace themselves for a busy week of earnings.
?Further declines will target 40,080, and then down to rising trendline support from mid-June. Bulls will look for a revival back above 40,500 to suggest that a low has been formed for the time being.
Dow Jones Daily Chart
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?The past two weeks have witnessed the index’s first real pullback since May.
?The price neared the 50-day simple moving average (SMA) last week and has moved higher this morning. It will need a move back above 19,800 to suggest that a low has formed. This might then see the index target the previous highs of around 20,750.
Nasdaq 100 Daily Chart
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?Friday saw the index close below the 100-day SMA for the first time since 13 November.
??June and July saw the price hold above this indicator, so Friday’s weak close may signal that more losses are ahead. A close below 18,000 bolsters this view. Bulls will want to see a move back above the 100-day SMA in order to stave off the expectation of further declines.
DAX 40 Daily Chart
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