Dow, Nasdaq 100 and CAC40 Continue to Rally​​​​

Article by IG Chief Market Analyst Chris Beauchamp

Dow Jones, Nasdaq 100, CAC 40 Analysis and Charts

​​​Dow stronger in wake of Fed decision

​The index’s rally was given fresh impetus by the Fed decision last night, which saw a more balanced outlook from Jerome Powell. ​The index has climbed to its highest level in two weeks, continuing its rebound from the lower low. The next target is the 200-day SMA, followed by the 34,000 level.

​Sellers will need a reversal back below 33,000 to negate the short-term bullish view.

Dow Jones Daily Chart

See How IG Sentiment Affects the Outlook for the Dow Jones

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​Nasdaq 100 rebound goes on

​The rally in this index gathered pace yesterday too. The upper bound of the current descending channel now comes into play as a potential near-term target.​Beyond this, the early October high at 15,330 comes into view. This would then see the price back above the 50- and 100-day SMAs helping to revive the medium-term bullish view.

​A reversal back below 14,500 cancels out this view for now.

Nasdaq 100 Daily Chart

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​CAC40 sees fresh gains

​A solid rebound continues here, though from a lower low within the context of a broader downtrend from the July highs.​Further gains target the 7170 area that marked resistance in late September and was previously support in late August.

​A failure to break above 7170 could mark a short-term top, and indeed a reversal below 7100 could also result in fresh selling pressure developing.

CAC 40 Daily Chart