S&P 500 (SPX), Dow Jones (DJI), Nasdaq Composite (IXIC) Daily Technical Outlook: Navigating Ford’s Fall & DJI’s Descending Triangle

Key Insights

• Amazon shines with a 5% surge after stellar Q3 results; Alphabet and Microsoft follow the trend.
• Ford faces a dip due to earnings miss and yearly guidance withdrawal; UAW strike cited.
• S&P 500’s bearish sentiment is evident, closing below its pivot point of $4,189.
• NASDAQ trend hints bearish below $12,865; key resistance likely at $13,200.
• Dow Jones breaks descending triangle at $32,875, indicating potential selling opportunities.

Quick Fundamental Outlook

In today’s daily technical outlook for the S&P 500 (SPX), Dow Jones (DJI), and Nasdaq Composite (IXIC), we reflect on recent market developments that have had a significant impact on these indices.

Amazon emerged as a standout performer, surging by 5% following its impressive third-quarter results, which exceeded analyst expectations. This positive momentum rippled through other megacap stocks, with Alphabet and Microsoft also experiencing gains. However, it wasn’t all smooth sailing on Wall Street.

Ford faced a 5% drop in its stock value after missing earnings expectations and withdrawing its yearly guidance due to the UAW strike. Chevron shares also dipped by over 4% following the release of their earnings report.

In the aftermath of these events, Friday proved to be a challenging day for the market, with the S&P 500 and Nasdaq Composite both shedding more than 0.50%.

These market dynamics set the stage for today’s technical analysis, examining key levels and trends for these indices.

S&P 500

In the latest market update, the S&P 500 (SPX) experienced a decline of 1.18%, bringing its current price to $4,137.22 over the past 24 hours. Analyzing the 4-hour chart timeframe, we note several key price levels.

The pivot point rests at $4,189, with immediate resistance at $4,260, followed by $4,318 and $4,398. On the downside, immediate support is found at $4,109, with subsequent levels at $4,052 and $4,001.

The Relative Strength Index (RSI) currently stands at 30, indicating oversold conditions, while the 50-day Exponential Moving Average (EMA) places the price below it, signaling a short-term bearish trend.

The observed chart pattern highlights a pivot point bearish breakout and a bearish engulfing candle, suggesting a selling trend. In conclusion, the overall trend appears bearish below the $4,189 level, with a short-term forecast anticipating a test of resistance at $4,260 in the coming days.

Traders should closely monitor these levels for potential trading opportunities.

NASDAQ

The NASDAQ

In the daily technical outlook for the NASDAQ on October 27th, the index faced a decline of 1.89%, bringing its current price to 12,595. Analyzing the 4-hour chart timeframe, several key price levels come into focus. The pivot point stands at $12,865, with immediate resistance levels at $13,201, followed by $13,401 and $13,709. On the downside, immediate support is found at $12,532, with subsequent levels at $12,278 and $11,936.

The Relative Strength Index (RSI) currently registers at 30, indicating oversold conditions. Meanwhile, the 50-day Exponential Moving Average (EMA) places the price below it, signaling a short-term bearish trend. Observing the chart pattern, the NASDAQ is poised to break the downward channel at 12,600 on the 4-hour timeframe, with the likelihood of bearish trend continuation below this level.

In conclusion, the overall trend appears bearish below the $12,865 level, with a short-term forecast anticipating a test of resistance at $13,200 in the coming days.

Dow Jones

In the daily technical outlook for the Dow Jones Industrial Average (DJIA) on October 27th, the index experienced a minor decline of 0.36%, bringing the current price to 32,697.64.

Analyzing the 4-hour chart timeframe, key price levels come into focus. The pivot point is established at $33,274, with immediate resistance levels at $33,726, followed by $34,150 and $34,568.

On the downside, immediate support can be found at $32,873, with subsequent levels at $32,622 and $32,300. The Relative Strength Index (RSI) is currently at 31, indicating neutral conditions.

Notably, the Dow broke out of a descending triangle at $32,875, suggesting potential selling opportunities below this level. Overall, the trend appears bearish below $33,274, with short-term forecasts eyeing resistance at $33,726.

For a look at all of today’s economic events, check out our economic calendar.