Key Chart Level Planning for Dow SP500 NASDAQ and Russell April 1

Apr 1, 2015: 9:50 AM CST

With a morning sell-off in motion, let’s take a moment to step back and note key inflection points, targets, neutral range zones, and other key planning factors on the “Big Four” US Stock Market Indexes.

We’ll start with the S&P 500 Index:

For additional background and specific planning, see this morning’s update post “Two Triangles and Level Planning for the S&P 500.”

Each chart in this post will highlight a “Neutral Range” level, a Bullish Breakout Trigger, and a Bearish Breakdown trigger.

We’ll be unbiased and use these as objective planning levels going forward.

The S&P 500 – as noted – has a Neutral Range (just like January 2015) between the 2,045 and 2,095 levels.

We’re focusing carefully on the 2,045 trendline and if price breaks lower, it could open a quick sell/liquidation play toward the 2,020 or even 1,990 downside targets.

Dow Jones Industrial Average:

The Dow Jones shows a similar structure – and pathway plan – to the S&P 500.

The levels for the Dow include a Neutral Range between 17,600 and 18,000.

Accordingly, the Trendline Breakout Levels are 18,000 (Bull) and 17,600 (Bear).

Downside targets first include 17,350 then the 17,000 region.

NASDAQ:

Unlike the Dow and S&P 500, the NASDAQ (and Russell 2000) shows Relative Strength.

There’s not really a “Neutral Level” as defined in the Dow and NASDAQ, but a “Pivot Point.”

We’ll give a 50 point leeway level but 4,800/4,850 should be seen as a key Bull/Bear Pivot.

Stop-losses and short-sale trades trigger under 4,800 to target 4,700 then the 4,600 level.

Otherwise, the NASDAQ hangs at the edge of a cliff and remains bullish above 4,800’s trendline support.

Russell 2000:

The Russell 2000 shows Relative Strength to the NASDAQ, making it the strongest of the four indexes.

We do observe a Neutral Range between the 20 and 50 day EMAs near 1,225 and 1,240.

This makes the Russell “Support Bullish” above 1,240 and “Breakdown Bearish” under 1,220.

Note the confluence near 1,190 should sellers break the market under 1,220.

Mark this post and use these levels as key planning zones and levels for your trades and positions.

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Check out the details and start planning the trip today to join us in May.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

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