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Dow Drops Back While Nasdaq 100 hits new High, and Russell 2000 Pushes Towards April High
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Dow Drops Back While Nasdaq 100 hits new High, and Russell 2000 Pushes Towards April High
May 21, 2024 6:06 AM

Major Indices Updates:

Dow struggles to hold above 40,000Nasdaq 100 hits new recordRussel 2000 still below April high

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Dow struggles to hold above 40,000

The index briefly touched a new record high on Monday, but then fell back.

After the strong move higher from late April, some short-term weakness or consolidation would not be surprising. Previous highs at 39,287 could provide some support, while below this lies the 50-day simple moving average.

The broader bullish outlook remains firmly in place, however, unless we see a drop back below 38,500.

Dow Daily Chart

Nasdaq 100 hits new record

This index managed to reach a new record high on Monday too, and held its gains.

The overall bullish outlook remains intact, and new record highs could follow, though Nvidia’s earnings on Thursday might provide the potential for some volatility.

A close back below 18,400 might indicate that a short-term top has formed and that a push back to 18,000 may begin.

Nasdaq Daily Chart

Russell 2000 still below April high

Unlike its bigger peers this index remains not only below its 2024 highs, but also far off the record high of November 2021.

Nonetheless the medium-term bullish view is still present, with the March high at 2140 now coming into view. Further gains target 2220, an intermediate high from January 2022.

As with other US indices sellers have yet to establish control here, though a close below 2085 would pierce short-term trendline support from the April low.

Russel Daily Chart

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