Monday’s Technical Outlook for DJIA (.DJI)
Wall Street ‘hijinks’ drove the Major US stock market indexes due North last Friday, with the S&P 500 tapping at record highs and closing at 2,129.90, up by 1.53%, on the Headline Only report of a strong rise in NFPs, suggesting the US economy is recovering after slowing down at the ends of Y 2015 which on a closer look is untrue, meaning the US Fed will not/cannot raise rates until sometime in Y 2017.
The DJIA rose by 250 pts or 1.40%, to close at 18,146.74
The NAS Comp added about 80 pts, to end at 4,956.76.
Corporate earnings will take center stage this week, with several big banks reporting their Quarterly results.
The technical outlook for DJIA
The daily shows that the index recovered further from its 100-Day MA after testing it mid-week, the technical indicators rebounded from their mid-lines and maintain their upward slopes, in line with further gains.
In the 4 hours, technical indicators have turned modestly lower from overbought marks within positive territory, the 20-Day SMA accelerated its advance well below the current mark, also supporting some further gains ahead.
The DJIA at 18146.74, +1.40% is close to breaking above the final resistance and all time high at 18350, which will signal the end of a 20 month sideways consolidation in the range of 15400-18300. This is a major signal if emerges this week, and it will have an impact on the other indices too.
Support marks: 18,051 17,986 17,920
Resistance marks: 18,162 18,230 18,290
Have a terrific week.
Latest posts by Paul Ebeling (see all)
- President Trump, “Big news coming for American Autoworkers” - May 23, 2018
- MS-13 Gang Members are ‘Not People; These are Animals’ - May 23, 2018
- NFL Owners, Our Players Must Stand for National Anthem - May 23, 2018