Monday’s Technical Outlook for the DJIA (.DIA)

Monday’s Technical Outlook for the DJIA (.DIA)

Monday’s Technical Outlook for the DJIA (.DIA)

$DIA, $.DJI

Friday, All 3 of the US major stock market indexes closed in the Red, with the DJIA off 185 pts to 17,535.32, its lowest close since early April, hit by poor earnings reports from retailers.

The broader S&P 500 index was down 17 pts, or 0.85%, at 2,046.61, and the NAS Comp fell 19 pts to 4,717.68.

The DJIA closed below its previous monthly low, and the daily shows that it is at the edge of a Bearish breakout, given that the benchmark is pressuring a strong support area around 17,450.

The technical indicators have resume their declines within negative territory, and the 20-Day SMA gains Bearish strength above the current mark.

In the 4 hours, the technical indicators posted modest bounces from oversold territory, but with the index near its lows and far below the moving averages, the risk remains towards the Southside.

Commentary

DJIA at 17535.32, -1.05%  has almost achieved target of 17500, and now may extend the decline to 17350 and then 17150. The downtrend remains intact as long as the Dow stays below 18000.

Support marks:17,450 17,396 17,330
Resistance marks: 17,617 17,678 17,745

Have a terrific week.

Paul Ebeling

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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