The daily chart shows the Dow Jones Industrials (US30) on the left, the SPX (SPX500) in the middle, and the Nasdaq (NAS100) on the right. All three indexes trade in their bear areas between the red and blue bands. Notably, their respective Bollinger Bands have expanded as the downside volatility increases. Of concern are their stochastic indicators. Each is positioned below 20 (green rectangle), which is indicative of underlying bearish momentum. If the respective stochastics lock in and maintain these positions, the indexes will likely come under further pressure. In addition, banks' results were poorer than in previous quarters, and NFLX's forward guidance was disappointing. This is compounded by the specter of a tighter economic environment going forwards, with the Fed expected to begin hiking in March.
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Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.