US stocks are sharply higher, with the Dow up 2.06%, the S&P 500 up 1.75%, the Nasdaq Composite up 2.40% and the Nasdaq 100 up 2.03%. The run to the upside – especially in the tech heavy Nasdaq indices are interesting in that a Democrat sweep – along with the referendum votes on data centers – could limit expansion. That too may slow the spending as well which may put a governor on the cost side for corporatations.
The price action and the technicals become important in times of change and volatility. Be aware that things can turn around, so having a technical roadmap is important.
In the video above, I outline the key levels that will determine whether buyers can keep the momentum going or start to lose some of the control
A quick review verbally shows:
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Dow: Back above its 100-day MA at 52,418. That is the close risk level for buyers. Stay above, and the next key upside target comes in near 53,794.
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S&P 500: Testing its 200-hour MA near 7,700. Get above and stay above to give buyers more control, with the 7,753–7,771 swing area the next target. Support sits near 7,617–7,622.
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Nasdaq Composite: The rebound has buyers targeting the 100-hour MA at 26,146, followed by the 100-day MA at 26,249. Both need to be broken to strengthen the bullish bias. The 200-day MA near 25,088 remains key support below.
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Nasdaq 100: The next hurdle is the swing area between 28,822 and 28,953. Get above and stay above, and the door opens toward the 100-hour MA at 29,229. The 200-day MA near 27,971 remains the key support barometer.
The buyers have their rebound. Now they need to get through resistance to keep it going.
