Updated Technical Levels
US stocks sold off sharply into the end of the day (Tuesday, 5/12/20) as it recorded the biggest one-day sell-off since May 1, 2020. Investors once again fret about the ending of the coronavirus lockdowns, the reopening of the economy, the recovery of the U.S. economy, and the spread of the coronavirus. Dow Jones Industrial Average suffered a decline of 457.21 points or -1.89%. The S&P 500 Index dropped 60.20 points or -2.05% and the NASDAQ Composite fell 189.79 points or -2.06%.
Given the sharp rallies from the March 2020 bottoms there appears to be a disconnect between the dire economic numbers and the optimistic stock market returns. As we head into the summer months volatility is likely to increase due to the continued uncertainties of the coronavirus, geopolitical concerns between the U.S. and China, and the impending US Presidential Election.
Attached is a summary of key technical levels (support/resistance) for SPX, INDU, and COMPQ:
S&P 500 Index (SPX – 2,870.12)
Key Resistances:
Resistance 1 = 2,934.5-3,001 (61.8% retracement from Mar-Apr 2020 rally, 4/29/20 high, 3/6/20 gap down, and 200-day ma)
Resistance 2 = 3,137-3,215 (3/3/20 high and 1/31/20 low)
Resistance 3 = 3,260-3,328.5 (2/24/20 gap down)
Resistance 4 = 3,393.52 (2/19/20 all-time high)
Key Supports:
Support 1 = 2,797.85 (5/4/20 low)
Support 2 = 2,725-2,727 (50-day ma and 4/21/20 low)
Support 3 = 2,637-2,641 (4/6/20 breakout)
Support 4 = 2,538-2,575 (4/6/20 gap up)
Support 5 = 2,447.49 (4/1/20 low)
Support 6 = 2,301-2,344 (3/24/20 gap up)
Support 7 = 2,191.86 (3/23/20 low)
Dow Jones Industrial Average (INDU – 23,764.78)
Key Resistances:
Resistance 1 = 24,764.77 (4/29/20 high)
Resistance 2 = 24,992-25,231 (3/9/20 gap down and 61.8% retracement)
Resistance 3 = 26,409-27,102 (200-day ma and 4/4/20 high)
Resistance 4 = 27,811 (extension of the top of broadening pattern)
Resistance 5 = 28,403-28,893 (2/24/20 gap down)
Resistance 6 = 29,568.57 (2/12/20 all-time high)
Key Supports:
Support 1 = 23,034-23,361 (5/4/20 low and 50-day ma)
Support 2 = 22,480-22,942 (4/21/20 low and 4/6/29 breakout)
Support 3 = 21,448-21,694 (4/6/20 island reversal gap up)
Support 4 = 20,735 (4/2/20 low)
Support 5 = 19,121-19,649 (3/24/20 gap up)
Support 6 = 18,213.65 (3/23/20 low)
Nasdaq Composite Index (COMPQ – 9,002.55)
Key Resistances:
Resistance 1 = 9,088-9,095 (1/27/20 low and extension of 2018 uptrend)
Resistance 2 = 9,323-9,542 (2/24/20 gap down)
Resistance 3 = 9,838.37 (2/19/20 all-time high)
Key Supports:
Support 1 = 8,957 (5/7/20 breakout)
Support 2 = 8,716-8,781 (5/5/20 bullish island reversal)
Support 3 = 8,451-8,538 (200-day ma and 5/4/20 low)
Support 4 = 8,149-8,216 (4/21/20 low and 50-day ma)
Support 5 = 7,876-7,880 (4/6/20 breakout)
Support 6 = 7,519-7,618 (4/6/20 island reversal gap up)
Support 7 = 7,288.11 (4/3/20 low)
Support 8 = 6,985-7,170 (3/24/20 gap up)
Support 9 = 6,631.42 (3/23/20 low)
