It is recommended to read the entire article before reaching hasty and incorrect conclusions regarding what is written.
From the March lows, the American indices recovered around 50% with an important performance both in terms of quantity and intensity. However, some things should be noted.
The whole recovery took shape in the months of April and May, while the month of June is closing with a closing lower than the opening for the main American indices such as the Dow Jones and the S & P500. The Nasdaq100 is not in the same condition, but as we will see, it is not managing to break key levels.
The conditions are therefore being created for the American indices to break the March lows.
As the monthly close is approaching, in these articles we will focus on the monthly time frame. For the levels to be monitored on a weekly basis, please refer to what was written last week (The rise in the American markets could be running out. The key levels to be monitored every week).
Graphical and predictive analysis on the Dow Jones
On the monthly time frame, the projection in progress on the Dow Jones (click here for prices) is bullish, but the very strong resistance in area 26109 (1st price target of the current increase) is holding back the rise in prices.
A monthly close below the indicated level could favor a recovery of the fall that would turn into an important reversal in the case of a monthly close below 23200. In this case, the March lows would be updated with decreases up to the 16220 area.
That the situation is not the best is also evident from the fact that the rise we have seen was not enough to trigger the BottomHunter signal.
Dow Jones: bullish projection in progress on the monthly time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration. The bottom panel shows the BottomHunter signal which when equal to 1 indicates that the minimum, on the considered time frame, has been marked.
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Graphical and forecast analysis on the S & P500
For the S & P500 (click here for quotes) exactly what is written for the Dow Jones is valid. Difficulty in overcoming the strong resistance in area 3234 (1st price target of the rise in progress) and absence of signal from the BottomHunter.
A monthly close below the indicated level could favor a recovery of the fall which would turn into an important reversal in the case of a monthly close below 2774. In this case, the March lows would be updated with decreases up to the 2032 area.
S & P500: bullish projection in progress on the monthly time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration. The bottom panel shows the BottomHunter signal which when equal to 1 indicates that the minimum, on the considered time frame, has been marked.
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Graphical and forecast analysis on the Nasdaq100
The current weekly projection on the Nasdaq100 (click here for prices) is bullish and has no more obstacles along the path leading to the 1st price target in the 10,610 area.
Monthly closings above this level would encourage further bullish extensions. Otherwise a monthly close below 9150 would accelerate towards the levels already reached in March 2020.
NASDAQ100: bullish projection in progress on the monthly time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration. The bottom panel shows the BottomHunter signal which when equal to 1 indicates that the minimum, on the considered time frame, has been marked.
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Conclusion
Pay close attention to the closing in June. A failure to break bullish could mean that the month of July is all downward with the possibility of going to update the lows marked in March 2020.
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