Dow Jones, S&P 500, FTSE 100, Technical Evaluation, Retail Dealer Positioning – Speaking Factors

• Key inventory market benchmarks buying and selling inside bearish chart patterns
• IGCS reveals blended outlooks for Dow Jones, S&P 500 & FTSE 100
• Study to make use of IGCS in your buying and selling technique through webinar recording

On this week’s session on IG Shopper Sentiment (IGCS), I lined the outlook for equities such because the Dow Jones, S&P 500 and FTSE 100. IGCS is usually a contrarian indicator. For a extra in-depth evaluation of the place these property might go, together with protection of fundamentals, take a look at the recording of the webinar above.

Dow Jones Sentiment Outlook – Bullish

The IGCS gauge implies that roughly 30% of retail merchants are web lengthy the Dow Jones Industrial Common. Upside publicity has decreased by 3.16% and 18.86% over a each day and weekly foundation respectively. The mixture of present sentiment and up to date modifications affords a stronger bullish contrarian buying and selling bias.

Dow Jones Technical Evaluation

Dow Jones futures are buying and selling inside a bearish Rising Wedge chart sample as optimistic RSI divergence reveals upside momentum fading. A break beneath the formation might open the door to extending losses. In any other case, costs might goal to check the midpoint of the Fibonacci extension at 31500.

Dow Jones Futures Every day Chart

Dow Jones Chart Created in Buying and selling View

S&P 500 Sentiment Outlook – Impartial

The IGCS gauge implies that about 38% of retail merchants are web lengthy the S&P 500. Draw back publicity has decreased by 2.01% over a each day foundation whereas elevated by 5.13% over a weekly interval. From right here, the mixture of present sentiment and up to date modifications affords a additional blended buying and selling bias.

S&P 500 Technical Evaluation

S&P 500 futures are additionally buying and selling inside a bearish Rising Wedge, with a breakout beneath the sample elevating the chance of a reversal. In the interim, costs proceed to commerce increased inside the formation, with the index eyeing the 50% Fibonacci extension at 3904.

S&P 500 Futures Every day Chart

S&P 500 Chart Created in Buying and selling View

FTSE 100 Sentiment Outlook – Bearish

The IGCS gauge implies that about 60% of retail buyers are web lengthy the FTSE 100. Upside publicity has climbed by 23.06% and 33.19% over a each day and weekly foundation respectively. The mixture of present sentiment and up to date modifications affords a stronger bearish contrarian buying and selling bias.

FTSE 100 Technical Evaluation

Just like the Dow Jones and S&P 500, the FTSE 100 additionally discover itself climbing inside a bearish Rising Wedge. Costs just lately rejected a mix of the March 2020 excessive and 78.6% Fibonacci extension. This might result in a retest of wedge help, the place a bounce might precede uptrend resumption.

FTSE 100 Every day Chart

FTSE 100 Chart Created in Buying and selling View

*IG Shopper Sentiment Charts and Positioning Information Used from January 12th Report

— Written by Daniel Dubrovsky, Foreign money Analyst for DailyFX.com

To contact Daniel, use the feedback part beneath or @ddubrovskyFX on Twitter