Dow and Nasdaq 100 Still Close to Highs, and Hang Seng Continues to Rally

Dow Jones, Nasdaq 100, Hang Seng Analysis and Charts

​​​Dow eases back from Friday’s high

​The index touched a record high on Friday, though it failed to hold its gains. ​Monday’s session saw the index struggle too, though it remains close to the record high. In the short-term, a drop below last Wednesday’s low at 38,335 would suggest a possible test of the 50-day simple moving average (SMA).

​Below this lies the previous peak of 37,825, and then down to the mid-January low of 37,129.

Dow Jones Daily Chart

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​Nasdaq 100 falters close to record high

​The situation is similar for the Nasdaq 100, which also hit a record high on Friday before dropping back into Monday’s session. ​An attempted rally on Monday fizzled out, which may set the stage for a test of last week’s low at 17,314, and then down to the 50-day SMA, which has not been tested since the rally began back at the end of October.

​A close above 18,000 puts the price on an upward path once more.

Nasdaq 100 Daily Chart

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​Hang Seng sits above 100-day MA

​The index’s rally has carried above the 100-day SMA for the first time since mid-November.​Gains have begun to falter, however, and a close back below the 100-day SMA, along with a bearish MACD crossover, could signal that a lower high is in place. The downtrend is still intact, even aftera 14% rally from the January low.

​The price has yet to move above the previous lower high from late December, around 17,120, so until this happens the bearish outlook remains.

Hang Seng Daily Chart