Dow’s Gains Erased in May
Source: dailyfx.com
The index has relinquished the gains acquired since the start of the month, plunging 2000 points within two weeks. This shift has altered the market outlook from short-term bullish to near-term cautious.
Support might emerge around 37,000 and 37,850—levels where buyers previously entered. If the Dow closes below its mid-April low, it might challenge the 200-day SMA for the first time since November. A rebound above 38,500 could indicate a potential low point has been established.
Nasdaq 100 Withstands Major Losses
Source: dailyfx.com
Thanks to robust performance in tech sectors, the Nasdaq 100 has avoided the significant downturns impacting the Dow.
Remaining close to its recent peaks, a breakout above 18,800 could signal the beginning of an ascent towards 19,000. Conversely, a fall below 18,400 would push the index beneath its early year highs, potentially testing the 50-day SMA.
Nikkei Faces Pressure
Source: dailyfx.com
During Wednesday’s trading, the Nikkei endured substantial losses, dropping below its trendline support since April and hitting a three-week low. Thursday’s session continued this decline, touching a one-month nadir.
If the index can reclaim the 38,300 mark, it may indicate some stabilization. Otherwise, further drops could revisit the mid-April lows near 37,000.
