Dow & Nasdaq 100 in Strong Form, but CAC40 sees More Muted Gains

Article by IG Chief Market Analyst Chris Beauchamp

Dow Jones, Nasdaq 100, CAC 40 Analysis and Charts

​​​Dow edges above 200-day moving average

​The impressive rebound for the Dow has carried the index back to the 200-day simple moving average (SMA).​Early trading on Thursday has seen the price edge above this indicator, though a close above it eludes the bulls for the time being. Additional upside targets the mid-August low around 34,100, and from there the 50- and 100-day SMAs come into view.

​​A reversal back below 33,500 would signal that sellers have reasserted control.

Dow Jones Daily Chart

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​Nasdaq 100 reaches trendline resistance

​The index has managed to surge above the 50- and 100-day SMAs in its rebound from the lows of late September. ​It has now reached trendline resistance from the July highs; in late August and September, this resulted in a lower high being formed. A close back below 15,050 would mark a lower high in this instance and open the way to another test of the lows of September around 14,500.

​If the buyers can manage a close above trendline resistance, then a bullish view could emerge, with the price then targeting 15,500, the previous lower high. Above this, the July highs come into play.

Nasdaq 100 Daily Chart

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​CAC40 rally slows

​Like other indices, the CAC40 has succeeded in rallying off its lows, though it remains below the 200- and 50-day SMAs.​The short-lived bounce in late September ran out of momentum below 7200, so a failure to close above this area would be a bearish development. This might then result in a fresh drop towards the 7000 level and the September low around 6965.

​Additional gains above 7200 would target the 50-day SMA, then the 200-day SMA, and then on to trendline resistance from the late July high.

CAC 40 Daily Chart