Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Dow Jones, SP500 and Nasdaq 100 index prices consolidate gains

Major US indices the Dow, S&P500 and Nasdaq100 have all produced medium term trend reversals, although longer term trends paint a mixed picture.

Source: Bloomberg

Dow Jones (Wall Street)

Source: IG Charts
Source: IG Charts

The Wallstreet 30 index price now trades firmly above the 200 day (blue line), 50 day (green line) and 20 day (red line) moving averages (MAs). The 20MA has been trading above the 50MA for a few weeks now suggesting that the short to medium term trends are up. The price having recently moved above the 200MA suggests the longer term downtrend has been broken.

The index is however in overbought terriotry. The overbought signal is considered to carry less relevance than the prevailing trends, although does lower the confidence of our further upside assumptions for the Wallstreet 30 index.

The index price has recently retraced from the short term highand has moved into a consolidation between levels 33180 (support) and 34100 (resistance). The consolidation could be serving as a correction of the recent move higher.

Our preference is to keep a long bias to trades, although first wait for either a bullish price reversal off range support (33180) or a break of resistance at 34100 (confrimed with a close) for entry.

Should the price instead move to close below support at 32970 we would need to reassess our long preference to trades on the index right now.

SP500 (US500)

Source: IG Charts
Source: IG Charts

The SP500’s recent move higher has been less pronounced than that of its Dow Jones industrial peer. The index has however also produced a short to medium term trend reversal (from down to up) highlighted by the 20MA crossing above the 50MA. The price has not yet moved above the 200MA to confirm a break of the longer-term downtrend.


Traders looking for long entry might prefer to see the 200MA broken with the price closing above this level as well as above resistance at 4000. In which case 4150 becomes a near term upside target from the move. In this scenario traders could look at trailing a stop loss on a close below the dotted trend line on the chart above.


Nasdaq100 (US Tech100)

Source: IG Charts
Source: IG Charts

The Nasdaq 100 index is lagging its SP500 and Wall Street peers, although the index has however also produced a short to medium term trend reversal (from down to up) highlighted by the 20MA crossing above the 50MA. The longer-term trend is still considered down as the price continues to trade firmly below the 200MA.
Our preference on the Nasdaq 100 is to remain market neutral while we assess whether we are in a correction of the longer-term downtrend or start of a new uptrend.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.