Stocks remain lackluster over the past two days as it seems the stock market is awaiting tariff news as American and Chinese negotiators continue to work to delay the duties that US is set to apply to Chinese imports on December 15th. Meanwhile, the signing of NAFTA 2.0 that will replace the North American Free Trade Agreement with Mexico and Canada did not generate too much excitement as stocks were basically flat today. So, what does the technical say about the US stock market over the near-term.
The Bollinger Bands of key US stock indexes have contracted sharply over the past few weeks and are now trading at their extreme levels. The tightening of these Bands is not sustainable and this hints of an impending major move in the US stock market in the days and weeks ahead. The following are key technical trading levels to monitor for major US stock market indexes:
S&P 500 Index (SPX):
Key trading supports = 3,119, 3,070-3,083, and 3,049. Key trading resistances = 3,154-3,156 and 3,238
Dow Jones Industrial Average (INDU):
Key trading supports = 27,876, 27,325-27,535, and 27,306. Key trading resistances = 28,175-28,217 and 29,025
NASDAQ Composite Index (COMPQ):
Key trading supports = 8,572, 8,435-8,441, and 8,326. Key trading resistances = 8,702-8,706 and 8,976
NYSE Composite Index (NYA)
Key trading supports = 13,478, 13,280-13,621, and 13,222. Key trading resistances = 13,612-13,621 and 13,944
