Global stocks continue trading lower on global-growth concern but, in this post, I’m more focused on identifying potential technical support levels below current price. Here’s what I’m seeing on some of the majors.
S&P500
S&P500 monthly: the monthly support trend line is still intact. Any break of this will have me watching for a test of the previous breakout region down near 1,600 and this also happens to be the 38.2% fib of the 2009-2015 swing high move. I might remind readers here that I noted this 1,600 breakout region back in 2013 throughout my blog posts and, even since July 2013, I have been looking for a test of this 1,600 trend line. I’m back to wondering if this period of weakness might deliver that test, and even, then some?
S&P500 weekly: A Flag seems to be containing price action for now though but I’m watching for any breakout here: bullish or bearish:
DJIA
DJIA monthly: the monthly trend line looks like it could be broken by the current monthly candle but this has some time before it closes. Any break and hold below this trend line would have me looking for a test of the 14,000 level which is also near the 38.2% fib of the monthly chart’s 2009-2015 swing high move. Note that a break of this region would have me looking down towards the 61.8% fib near the 11,000 level which is S/R from the 2000 time zone.
DJIA weekly: however there is a bit of a weekly Flag in play here too, as for the S&P500. Thus watch for any Flag breakout here too: bullish or bearish:
NASDAQ monthly: the monthly trend line has not been broken here yet but, if so, then I’d be watching the 61.8% fib down near the 2007 high of 2,800:
Russell 2000 weekly: there is a weekly support trend line here for now. Any break of that will have me watching the 61.8% fib down near 720:
FTSE monthly: the monthly trend line was broken here a while ago. Keep an eye on the 5,600 S/R region and then the 61.8% fib, near 4,800, which is also a key S/R region:
DAX monthly: a support trend line has been broken here so watch for any test of the breakout region of 8,300 which is also near the 2009-2015 swing high’s 50% fib. Any break of that will have me looking for a test of the 61.8% fib near 7,000.
XJO monthly: a monthly support trend line is under pressure here too. Watch for any break of this for a possible move down to test the 4,800 S/R level. Any break of that region would bring the 2009-2015 swing high’s 61.8% fib, near the monthly 200 EMA and 4,200 S/R region, into focus:
TSX monthly: this index has already broken through monthly support and tested the 2009-2014 swing high’s 50% fib near 12,000. Any continued weakness would bring the 61.8% fib near 10,500 into focus:
VIX weekly: Hmmm: I am surprised the VIX is still below 30 with all this sell-off activity. Watch for any move above this 30 level:
