The US stocks are set to open higher with the NASDAQ index leading the way.
Recall from last week, the NASDAQ index had its worst training week since April 15, falling by -3.65%. The S&P index fell by -1.97%, but the rotation sent the Dow industrial average up 0.72%. The Russell 2000 also advanced last week by 1.67% despite a -0.63% decline on Friday.
Today the futures are currently implying:
- Dow Industrial Average average + 70.21 points
- S&P index +35.25 points
- NASDAQ +228.50 points. On Friday the index fell -144.28 points or -0.81%.
Technically for the NASDAQ index, it fell below its 200-hour moving average currently at 17910.26 last week. The closing level was 17726.94.
The closing level from Friday is 183.06 points away from that moving average. With the futures this morning implying a gain of 228, the price should open above that moving average level.
Watch that 19910.26 level today. Staying above could see more momentum on the reversal of the technical bias. The 100-hour moving average comes in at 18202.84 and would be the next upside target.
Last week’s fall took the price below the 200 hour MA for the first time since May 3. Traders had to respect that break technically. Now with the weekend news and price action, traders will be eyeing if the gain can be maintained and shake the bearishness back out of the price action.
This article was written by Greg Michalowski at www.forexlive.com.
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