Large Cap Momentum Declines With NAS100 Showing Relative Weakness
Daily
The daily charts below show the DJI (US30) on the left, the SPX (SPX500) in the middle, and the Nasdaq (NAS100) on the right. All three indexes dropped following the release of the Fed's December minutes last week. Of the three, the NAS100 shows relative weakness and is between the lower blue and red bands. The US30 and SPX500 are in the neutral areas between the blue bands, with the US30 showing relative strength. We also note the stochastic declines as bullish momentum evaporated. The NAS100's stochastic is approaching its lower quintile (aqua arrow). This is to be monitored because if the stochastic does drop below 20 and maintains, it will suggest a growing downside momentum.
Past Performance: Past Performance is not an indicator of future results.
Hourly
The pre-market open charts indicate a bullish momentum for the US large-cap indexes. All three are positioned between their respective upper blue and red bands. These are regarded as bullish areas. Moreover, their short-term stochastics suggests bullish momentum on the hourly charts. However, given the waning momentum on the daily, if the hourly stochastics drop below 80, it may signal that shorts are targeting the current rally. Therefore, caution is warranted.
Past Performance: Past Performance is not an indicator of future results.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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