Dow Jones & Nasdaq 100 Price Outlook:
Dow Jones & Nasdaq 100 Wrestle With Resistance, Are They At Risk?
Stocks have endured a bit of back and forth price action this week as traders react to the likelihood of a second stimulus relief package. After initially falling as President Trump announced via Twitter that another program would have to wait until after the election, losses were soon reversed alongside a simultaneous rollback from President Trump. Consequently, it seems fiscal stimulus remains the driving force behind equity markets this week and after all that has transpired, little has been achieved.
Suffice it to say, investors are left with essentially the same questions they had entering the week and the price of the Dow Jones and Nasdaq 100 reflects that. Thus, it seems likely ongoing discussions between Democrats and Republicans regarding stimulus will continue to be the main influencer behind equity price action in the shorter-term. Nevertheless, the Dow Jones and Nasdaq 100 have already begun to probe overhead resistance, does that put them at risk of another reversal?
Dow Jones Technical Outlook
In the case of the Dow Jones, price has climbed to an important area of support turned resistance. The line was initially derived from the index’s June low, but has since reaffirmed its influence after a series of successful holds in October. Critically, the ascending band may mark the topside of a rising wedge – typically viewed as a bearish technical formation.[1]
Dow Jones Price Chart: 1 – Hour Time Frame (September 2020 – October 2020)
As shown in the chart below, the Dow has worked itself into a rising wedge and may be at risk of a bearish reversal. While it is difficult to make such calls with confidence given the uneasy fundamental landscape and
