NASDAQ 100 edges up and Dow sits at new record, while Hang Seng falls back
US markets are aiming to make gains as they return from their long weekend, with the Dow sitting at new highs. Meanwhile, the Hang Seng is under pressure again.
NASDAQ 100 edges higher
The NASDAQ 100 index has pushed higher from the lows of last week, though it remains well below the highs seen in the second half of August at 19,950.
It has held trendline support from the August low, which formed with the low last week, and this may provide an underpinning for a move back to the 19,950 highs. Above this the index can then contemplate a move through 20,000 and then on towards the July record highs once more.
A close back below last Wednesday’s low at 19,080 would signal that the sellers have reasserted control. This could then see more losses in the direction of the 200-day simple moving average (SMA), currently 18,188.
Dow holds around new record
The Dow Jones has enjoyed a much more impressive rebound, heading back to the highs of July and then breaking through to reach a new record last week.
In the short-term, continued price action above 41,382 would mean that the price will look towards new record highs in the direction of 42,000. A close below this would raise the possibility of a pullback towards the 50-day SMA, currently 40,191.
The 28 August low at 40,833 might provide some support, as buyers stepped in to defend this level recently.
Hang Seng heads lower
Last week’s surge to a seven-week high is now but a distant memory.
The Hang Seng price failed to hold on to its gains and underwent a sharp reversal, closing below 18,000 and failing to push on above the highs seen in the previous sessions. Two sharp down days have been seen so far this week, which raises the prospect of a lower high for this index.
Further declines target the 200-day SMA, and then on towards 17,000, and potentially even the August low around 16,430. Buyers will need a rebound and close back above 17,900 to suggest that a new attempt at a move higher is underway.
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