Dow struggles but S&P 500 and Nikkei 225 push higher
While the Dow failed to hold its gains from the initial part of Monday’s session, the S&P 500 and Nikkei 225 have both been bolstered by a strong showing from tech stocks.
Dow fails to hold its Monday gains
The Dow Jones began the year with a move higher from the 42,250 support zone, where it also bounced in late December.
However, yesterday’s push to 43,000 was knocked back, with the index unable to hold on to the gains made. Bulls need to rediscover forward momentum; in the short term the index needs to clear 43,000 and then the late December high at 43,322.
A close back below 42,000 breaks below the support zone of the past three weeks.
S&P 500 pushes higher
The broader S&P 500 had a better day on Monday, moving higher, though it too was unable to hold on to all its gains, most notably around 6000.
A recovery today would then target the late December high just below 6050, and then open the way back to the record highs from December at 6100.
Support has been found since mid-December around 5850, so a close below this is needed to clear the way for more losses.
Nikkei 225 rallies back to 40,000
Tech stocks helped the Nikkei 225 to make further gains overnight, continuing its rally from the November low.
A mid-December dip saw the price fall back from 40,000 to below 38,500 for a brief period, but it has recovered once more. A new higher high was created in late December, and while the New Year saw a fall back towards 39,000, it has since rallied.
40,000 has marked the limit of the index’s upside since October, so a break above this would put the index back on course to the record highs of the summer.
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