he S&P 500 dipped below the 4,000 hurdle and headed towards 3,900. Bulls reclaimed the critical level but it flipped into resistance as sentiment waned. The rejection consolidated prices, with increasing bearish commitment putting the range at risk of a breakdown towards 3,830 and 3,740. Flipping the psychological level opens the door to 4,080 and even 4,200 if the RSI divergence transpires into upward momentum.
The Nasdaq selloff exacerbated towards the 12,000 barrier, where buyers took hold of price action. However, demand has not been strong enough to exploit a bounce towards 12,650, with bearish velocity likely to decelerate around 11,840 if bias fades. Failing to keep sellers at bay could send the index towards 11,540. A bullish breakout of 12,260 would allow traders to recuperate some losses towards 12,500.
DJIA bears failed to capture 31,000 but are at a comfortable distance from 32,000 which is now resistance below 32,360. Before a sustained rally could come to fruition a slide towards 31,000 could unveil itself in a bid to seek liquidity. Inadequate efforts to preserve the psychological stronghold could put a dent in bearish dominance near 30,380 if the short-term support at 30,940 and the apparent momentum on the RSI fade.
An absence of momentum has kept the price of oil in consolidation, with futures ending the week on a negative bias closer to the bottom. Insufficient demand below 90 could commence a move towards 82 if the 86 support succumbs to short sellers. Otherwise, a rally toward 95 could elongate the duration of the battle if the top triggers some profit-taking unless the range widens towards 97.