Dow Jones Today: Stock Futures Point to Big Gains After Fed Rate Cut
With the S&P 500 at a Record High, Watch These Key Levels
3 minutes ago
The S&P 500 jumped to an all-time high above 5,700 on Thursday morning as U.S. stocks rallied on the Federal Reserve’s supersized rate cut yesterday.
Below, we’ll take a closer look at the S&P 500’s chart and use technical analysis to point out key levels worth watching out for.
Since establishing a record high in mid-July, the S&P 500 has oscillated within an orderly symmetrical triangle, a chart pattern formed by trend lines connecting a series of sequentially lower peaks and higher troughs, which typically precedes a breakout in price.
Should Thursday’s jump constitute that breakout, we can forecast an upside target by using the measuring principle, also known as the measured move technique.
To do this, we calculate the distance of the symmetrical triangle near its widest point and apply that amount to the pattern’s top trendline. For instance, here we add 650 to 5,650, which projects an upside target of 6,300.
To the downside, traders should keep an eye on 5,265. This location on the chart may provide support near a trendline that connects the March highs with comparable trading levels in May and early August.
U.S. Stock Futures Point to Big Gains After Fed Cuts Rates
1 hr 6 min ago
Futures contracts connected to the Dow Jones Industrial Average were up 1.2% in premarket trading on Thursday.
S&P 500 futures advanced more than 1.6%.
Nasdaq 100 futures surged 2.2%.