Talking Points:

• Dow consolidation continues
• Nasdaq 100 on the back foot
• Hang Seng hits 14-month low
• Download our brand new Q1 equities forecast below:

Dow Consolidation Goes on

The index continues to consolidate, with no sign yet of a fresh break to the upside.

Futures were muted in Monday’s limited trading, but there is also little indication that a more substantial pullback is at hand. If one does develop it may target the rising 50-day simple moving average (SMA).

It would take only a small bounce for the index to push to a new all-time high.

Wall Street (Dow Jones) Daily Chart

Source: ProRealTime, IG - compiled by Chris Beauchamp

Nasdaq on the back foot

After last week’s recovery, upside progress has stalled, but the index remains within easy distance of fresh record highs.

Last week saw a brief dip towards 16,630, with buyers emerging to defend this level. Thus a close back below this may provide some short-term bearishness, towards the 50-day SMA.

Conversely, a close back above 16,980 would leave the index in fresh record territory.

US Tech 100 Daily Chart

Source: ProRealTime, IG - compiled by Chris Beauchamp

Hang Seng hits 14-month low

The index continues to tiptoe towards new lows in its current downtrend.

Further downside seems likely, with the break below 16,000 to a fourteen-month low bolstering the bearish view. Now it continues to eat into the gains made in November 2023, in the direction of the 2022 low around 14,620.

A close back above 16,450 is needed to suggest a fresh short-term rebound may have begun.

HS50 (Hang Seng) Daily Chart

Source: ProRealTime, IG - compiled by Chris Beauchamp

https://www.dailyfx.com/news/dow-nasdaq-100-edge-lower-while-hang-seng-hits-new-14-month-low-20240116.html