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

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

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

$DIA, $.DJI

Wall Street dove Wednesday, reversing most of Tuesday’s gainers.

DJIA shed 217 pts or 1.21% to close at 17,711.12, the NAS Comp gave back 1.02% to end at 4,760.69, the S&P lost 0.96% to close at 2,064.46.

Retailers led the decline with Macy’s (NYSE:M) falling 15% after reporting its 5th straight Quarterly same store sales decline, Disney (NYSE:DIS) fell 4% after missing earnings for the 1st time in 5 years. The sharp decline has made the index erase almost all of its weekly gains.

On the daily: action indicates that it is set up to extend the decliner, as it faltered around a mildly Bearish 20-Day SMA before extending South.

The technical indicators are also headed lower, within negative territory.

In the 4 hours: the index broke below all of its MA’s, the technical indicators are currently within Bearish territory, but losing the downward potential and turning slightly higher, pointing for some short term consolidation in here.

Commentary

DJIA at 17711.12, -1.21% faded at Key resistance of 18000 retracing all gains made Tuesday, seeing test of 17500-400 by the end of this week

Support levels:17,698 17,630 17,540
Resistance levels: 17,740 17,791 17,846

Stay tuned…

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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