In this article, Mish Schneider, director of trading research and education at MarketGauge.com, provides insight into what the current movements of major indices.
Three of the four major indices closed negative on the day. The iShares Russell 2000 ETF [IWM] closed at $230.44. This places it right on new support from February highs.
If IWM cannot hold $230, we could see a return to its choppy price area between $218 and $230.
Additionally, the S&P 500 (represented by the SPDR S&P 500 ETF [SPY]) is close to its support area from February highs at $394.
Like IWM, it will need to hold this support level or it risks falling back into a high volatility area.
On the other hand, both the Nasdaq 100 (represented by the Invesco QQQ ETF [QQQ]) and the Dow Jones (represented by the SPDR Dow Jones Industrial Average ETF [DIA]) are playing their own games, with the QQQ flirting with the 50-day moving average (DMA) at $320 and the DIA consolidating near highs.
This shows division in the indices which can lead to indecisive/choppy price action.
All in all, with the major indices sitting on pivotal price levels and the Federal Open Market Committee meeting today, waiting for a congruent move up in the indices might be the best plan for the moment.
This article was originally published on MarketGauge. With over 100 years of combined market experience, MarketGauge's experts provide strategic information to help you achieve your investing goals.
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