Dow Jones, S&P 500, Nasdaq 100 Technical Outlook in Limbo

U.S. Indices Technical Highlights:S&P 500 beginning to wedge up against significant levelsDow Jones has important support just belowNasdaq is currently neither “here nor there”Dow Jones, S&P 500, Nasdaq 100 Technical Outlook in LimboIt’s been difficult getting a handle on stocks as momentum is lacking and big levels are coming into play. The S&P 500 is stuck up against record highs while the March 2020 trend-line continues to close in as support.Record highs and the rising trend-line could create a wedge scenario that leads to a strong breakout. Given the trend and fact that the wedge would be an ascending wedge, the likelihood is that we would see a breakout to the top-side.But we can’t rule out a downside break either. A breaking of the underside wedge is also a breaking of the important March 2020 trend-line – this could spell sizable trouble for stocks. We have yet to see a lower-low on an intermediate-term basis since the coronavirus panic began, something that would still require a decline below 4056.For now, staying patient and waiting for further cues seems to be the most prudent approach, but soon we could have a resolution with either 4238 or the March trend-line breaking.S&P 500 Daily ChartS&P 500 Chart by TradingViewThe Dow Jones is rolling over towards a test of the March 2020 trend-line. It could test at any time and either hold it once again to also help form out what is becoming a wedge pattern of sorts, or it could break and the slope from June could get tested. The Dow has been a leading index on the top-side so if the March trend-line holds it could be the brightest spot for the market as it tries to break to fresh record highs. Dow Jones Daily ChartDow Jones Chart by TradingViewThe Nasdaq 100 is between significant levels, which makes getting a handle on it a bit more difficult. The record high is nearly 300 points above and support via the March 2020 trend-line and September slope is about another 500 points lower. The general outlook here is neutral with risk/reward on either side of the tape not particularly appealing.Nasdaq 100 Daily ChartNasdaq 100 Chart by TradingViewResources for Forex TradersWhether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.—Written by Paul Robinson, Market AnalystYou can follow Paul on Twitter at @PaulRobinsonFX
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