(MENAFN - DailyFX) S & P 500/Dow Jones Technical Highlights:Market turnaround has big gap to fillDow Jonesfound 200-day as support Check out the fundamental and technical forecast for stocks as they rise towards record highs in theQ2 Equity Markets Forecast.
Market turnaround has big gap to fill Yesterday, the market sprinted higher shortly after the open on a headline announcing that President Trump was going to delay implementing the auto tariff. On that a short-term bottom, at the least, may have been put in place. Upside gap-fills (at least one) are in order at this point, as we have seen several down-gaps post most of the losses off the highs.
First up is the is the glaring gap from Monday, almost exactly 30 points higher from yesterday's close at 2881. Pre-market futures are indicating higher by about 10 handles, so that leaves roughly 20 more to go. There is good probability that this one at the least gets filled. It could be as soon as today.
Whether other gaps from earlier this month can yet be filled is to be seen. How the market behaves at the first fill and around the strong Friday reversal-day high of 2891 could be telling as to whether the broken rising wedge still has kick left in down to the 200-day MA or worse, the bottom of the formation at 2722.
At the very least short-term traders look to have an edge here in longs up to complete the Monday gap-fill.
Check out theIG Client Sentiment pageto see how retail traders are positioned and what it could potentially mean for various currencies and markets moving forward.
S & P 500 Daily Chart (gap to fill)
Dow Jones found 200-day as support The Dow Jones is bouncing from around the 200-day MA, with its first gap-fill coming up on a move to 25942, but like theS & P 500it will take an ambitious rally at this time to fill others seen earlier this month. If the market fails to hold onto a rally and the S & P makes a run for the 200-day then it will be interesting to see if the Dow can maintain it's own 200 and the low from March at 25208.
Dow Jones Daily Chart (Held 200-day, gap to fill)To learn more about U.S. indices, check out'The Difference between Dow, Nasdaq, and S & P 500: Major Facts & Opportunities.'You can join me everyWednesday at 10 GMTfor live analysis on equity indices and commodities, and for the remaining roster of live events, check out thewebinar calendar .
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at@PaulRobinsonFX