FTSE 100, S&P 500, Dow Jones Outlook for the Coming Week

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FTSE 100, S&P 500, Dow Jones Outlook:

  • The S&P 500 narrowly stands under all-time highs, the key psychological handle
  • The Dow Jones Poked over resistance to create a new high that could fuel further gains
  • The FTSE 100 had a tumultuous trade week as the resistance work to halt the breakout

Dow Jones Fundamental Outlook

Outlook – Bullish

The Dow Jones treaded just over the June peak last week to create a fresh post-coronavirus high at the 28,000 levels, the encouraging development for those looking for the bullish continuation. Having said that, the price action slowed down after the price went above the previous June high, as shown by the small candlesticks to end the week. Although the lack of momentum could necessitate more concerns within a short period of time, the creation of the fresh high is a very optimistic fundamental trend for the short term.

In this regard, the pullbacks from the previous altitude might start looking for support at the June high, which would be the Fibonacci level trading at 26,883 and possible, the most important one is the rising trend from May as AUD/USD Raised After Australian Jobless Claims Data.

So, declines in the nearest future might serve more healthy consolidation unless the break under this trendline and the mid-July swing low happens, which will then warrant the re-evaluation of the fundamental forecast. Overall, the fundamental backdrop seems to be encouraging for an uptrend, but this prudent approach might propose patient until a beneficial entry is available.

Dow Jones Price Chart

S&P 500 FUNDAMENTAL OUTLOOK

NEUTRAL OUTLOOK

The S&P 500 index currently finds itself in the same standing. It is just creeping under the benchmark’s all-time high hovering around the 2,397 prices has almost made a full recovery from the coronavirus crash and the confident break out over the previous highs could open doors for an uptrend. Having said that, the breakout lacks confidence with the price action meandering through a similar price range for a better part of last week.

On the other hand, the S&P 500 seems weak according to the latest standing, just the same way as the Dow Jones. This is because both of them seem to be knocking on the doors for the new levels, but none seem to be having enough momentum or confidence, which doesn’t match the potential follow-through.

Having said that, we shall again recommend patience incase you want to start trading this US index since the new risk-reward profile isn’t quite appealing.

S&P 500 Price Chart

FTSE FUNDAMENTAL OUTLOOK

NEUTRAL OUTLOOK

If you are seeking material fundamental changes, then the FTSE 100 is without a doubt, not the index you should be looking for. Nevertheless, it might present a great chance for the range traders as the fundamental formation that has been around since June displayed its impact again.

After a great UK GDP record helped drive the rally last week, it seems like the FTSE 100 might ultimately find the necessary spark to break out of the current confines of the horizontal trading zone.

FTSE 100 Price Chart

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