Article written by Christopher Beauchamp, IG Chief Market Analyst

Talking Points:

• Dow consolidation continues
• Nasdaq 100 on the back foot
• Hang Seng hits 14-month low

Dow Consolidation Goes on

The index continues to consolidate, with no sign yet of a fresh break to the upside.

Futures were muted in Monday's limited trading, but there is also little indication that a more substantial pullback is at hand. If one does develop it may target the rising 50-day simple moving average (SMA).

It would take only a small bounce for the index to push to a new all-time high.

Nasdaq on the back foot

After last week's recovery, upside progress has stalled, but the index remains within easy distance of fresh record highs.

Last week saw a brief dip towards 16,630, with buyers emerging to defend this level. Thus a close back below this may provide some short-term bearishness, towards the 50-day SMA.

Conversely, a close back above 16,980 would leave the index in fresh record territory.

Hang Seng hits 14-month low

The index continues to tiptoe towards new lows in its current downtrend.

Further downside seems likely, with the break below 16,000 to a fourteen-month low bolstering the bearish view. Now it continues to eat into the gains made in November 2023, in the direction of the 2022 low around 14,620.

A close back above 16,450 is needed to suggest a fresh short-term rebound may have begun.