Tuesday’s Technical Outlook for DJIA (.DJI)
US indexes surged to fresh all-time highs Friday, before ending the day flat.
The initial rally came after the release of stronger-than-expected US data, as retail sales were up by 0.6% in June, industrial production rose to 75.4%, also beating expectations.
Stocks retreated ahead of the close on news over a military coup in Turkey, with the DJIA closing Monday at 18.516.55, up by 10 pts, but the NAS Comp and the S&P 500 down by 4 and 2 points respectively.
The DJIA daily shows that, despite closing in the Red, the index managed to post a higher high and a higher low daily basis, and it is holding above its MAs, while the technical indicators have barely retreated from overbought levels, suggesting upcoming declines may be just correctives.
In the 4 hours, the benchmark holds above a horizontal 20-Day SMA, the Momentum indicator approaches its mid-line within positive territory, and the RSI remains flat around 59, indicating also a moderate downward scope in here.
- DJIA +6.4% YTD
- Russell 2000 +6.4% YTD
- S&P 500 +6.0% YTD
- NAS Comp +1.0% YTD
Support marks:18,390 18,322 18,246
Resistance marks: 18,481 18,560 18,620