Market Recovery: S&P 500 (SPX), Nasdaq Composite (IXIC), and DJIA (US30) Bounce Upwards
The SPX, IXIC and US30 behave in a similar way. After a steep correction, they are set for a bounce towards the upside.
S&P 500 (SPX): Overcoming Resistance?
The S&P 500 (SPX) recently exited its ascending trend channel, breaking critical support levels, including the 50-day EMA at 5,077, before establishing a temporary low at 4,955. Since this nadir, the SPX has rebounded impressively by 3.25%, successfully reclaiming the 50-day EMA and surpassing the 0.382 Fibonacci level between 5,073 and 5,077.
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The index is now poised to test the Golden Ratio at 5,155. Should SPX decisively breach this resistance, it may reestablish its bullish trajectory, rendering the recent correction moot. Conversely, a failure at this juncture could see SPX retreating to a significant support at 4,955, and potentially further to the 0.382 Fib level at 4,820. The RSI on the daily chart remains ambiguous, yet the MACD histogram suggests a bullish trend, with an impending bullish crossover of the MACD lines. The EMAs already established a Golden Crossover, confirming the trend bullishly in the short- to medium term.
Nasdaq Composite Index (IXIC): Will IXIC Return To Its Uptrend?
Following a substantial correction falling short of its target by approximately 1.4%, the Nasdaq Composite Index (IXIC) has rallied nearly 5%. It now contends with the 50-day EMA resistance at 15,879. A bullish breach here could propel IXIC towards the critical Golden Ratio resistance at 16,081. Overcoming this Fibonacci milestone would signal a negation of the correction, potentially resuming the uptrend.
The daily chartโs indicators reinforce this bullish sentiment, with EMAs displaying a golden crossover and the MACD histogram trending upwards, hinting at an upcoming bullish MACD crossover. The RSI, however, remains neutral, offering no definitive momentum cues.
DJIA (US30): US30 Missed The Correction Target By 0.5 %
The DJIA (US30) experienced a significant correction, descending to 37,238.4, narrowly missing the 0.382 Fib support at 37,037. Since bottoming out, US30 has rallied by 3.65%, but currently faces resistance at the 50-day EMA of 38,487, where it has so far been rejected.
Should it overcome this barrier, the index could ascend to the Golden Ratio at 39,926. A bullish breakthrough at this level would invalidate the correction phase, reaffirming US30โs uptrend. The daily chart indicators are predominantly bullish, with a golden crossover in the EMAs and the MACD lines on the verge of a bullish crossover, complemented by a rising MACD histogram. The RSI, however, continues to oscillate within neutral territory.
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