A look at the US indices
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: The US jobs numbers are in, and sentiment is weighing a disappointing headline figure against a 48-year low in unemployment and the impact of Hurricane Florence.
The DJIA has put in a Doji evening top and reversal pattern, testing the lower rising trendline in what looks like a rising wedge formation. A break below yesterday’s low could trigger a sell-off, taking the index down to 25,750. Divergence on both RSI and MACD indicates a correction is due.
Strong resistance is seen at 2,940, forming what looks like a double-op pattern. The index looks likely to test support around 2,860 over the next couple of days. A close below 2,860 could fuel further a sell-off to 2,800. Divergence on RSI and MACD indicates that it's correction time.
For the bear trend to be cancelled out, the S&P 500 needs to take out the highs at 2,940.
Strong resistance at 7.691 with a double top-like formation to be confirmed by a close below 7,400. The rising trendline has been broken as of Thursday's close. A close below 7,400 is likely to take the index as low as 7,000; we see support at around 7,250. To prevent the bearish picture from continuing to unfold, a close above 7,691 is needed. RSI and MACD divergence indicates a further bear move ahead.
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