Thursday’s Technical Outlook for DJIA (.DJI)
The US major stock market indexes finished the day higher Wednesday on a light trading session.
The DJIA + 66.77 at 18,005.05, the S&P 500 6.99 pts higher, at 2,119.12, and the NAS Comp 12.89 pts, to close at 4,974.64
US stock market participants saw “good” after the World Bank(WB) proffered it bad news lowering its Y 2016 global GDP growth forecast to 2.4% from 2.9% and slashing the US GDP outlook to 1.9% from 2.7%.
The downgrade did not pressure US stocks as participants interpreted the bad news as a sign that domestic and global monetary policy will likely remain very accommodative for longer, read: no Fed interest rate hike in the near term.
Notably, Gold +1.2% at 1262.20 oz and Silver +3.7% at 17.00 oz, both benefiting from the 4th straight decliner in the US Dollar (.DXY) Index to 93.61, which fell 0.2% to marks from early May 2016.
Misery and Pain are comfortable bedfellows in global markets, at a time when risky assets including stocks, commodities, junk bonds and
emerging-market currencies are rallying to multi-month highs, so are the safe-havens: Gold, government bonds to the CHF and JPY.
DJIA at 18005.05, +0.37% is getting closer to the target at 18100-50, the lower end of the resistance band 18150-350. The price action there must be watched carefully. Uptrend remains intact, but there is no bias in here.
As I write this report the DJIA mini futures for Sept 2016 are trading – 40.00, time 3:40a EDT. PE
Resistance marks: 18,010 18,084 18,161