US Equities Technical Outlook: Range-Bound with Downside Potential

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The equity selloff the end of Q3 places the major US indices at a crucial level of support. Failure of support with sustained momentum leaves stocks open to further downside

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.Dow Jones: Downside Vulnerability Appears More Pronounced

This report deals with the technical aspects of major US indices. For the comprehensive US indices forecast, including fundamental considerations, download our complete guide for Q4:The best way to approach that is by assessing the confluence zone of support around the August 2022 high of 4,325 and the 61.8% Fibonacci retracement of the 2022 major decline at 4,311. This zone, and more specifically the 4,325 level, has proved too much of a challenge for price action during previous run ins.

Bulls may not wish to give up that easily, potentially defending support at 14,558 – resulting in choppier price action. A sideways channel between 15,932 and 14,558 may ensue, potentially favouring the lower band of the sideways channel until bears make another attempt at that bearish breakout.index appears the most susceptible to an extended selloff by virtue of its technical posture.

 

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