By: Tom Gentile
on February 28th, 2023
A recap of the performance of the 3 major market indices is found below. After this data I am going to highlight the chart for a tracking ETF for each and highlight what is seen as support as each one is close to breaking below their respective support levels. If they do break down we have the Fibonacci retracement tool plotted on each to ascertain a possible target price / new support level lower.
The Dow, NASDAQ, and S&P 500 for the month of February
Today was the last day of trade for February. February was a losing month for stocks. The Dow led the averages down, closing out February down 4.19%. The S&P 500 and Nasdaq Composite shed 2.61% and 1.11%, respectively.
With this down month the Dow slid into negative territory for the year. The other two indexes are still holding onto their gains but are close to support levels. From a bullish perspective it would be encouraging for them to continue to hold these levels and not break down any further.
Here are the Charts for the DIA, QQQ and SPY
In each image you can see the Fib levels placed on each. The DIA, which represents the Dow Jones Industrial Average, is at 38.2% retracement. The fact it tested that level before back in December of 2022 makes this a double bottom formation.
If it breaks down from here the fib levels on the chart are next level prices DIA may retrace to and or find support.
The Q’s or QQQ shows a current, single test of 38.2%. The Fib tool is on that to show next level price target or support levels.
And last, the SPY is also at 38.2% fib retracement with the next level fib retracement prices shown.
The Dow, as stated earlier is already in negative territory thus far, two months in to the new year. The other two are at risk of breaking down. In all cases if they don’t hold these levels and bounce higher, the lower fib price levels could come in to play.
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