Wednesday’s Technical Outlook for the DJIA (.DIA)
The US major stock market indexes fell Tuesday as tech stocks were pressured and Crude Oil’s decline sent the energy sector 2.4% lower.
The DJIA dove 140 pts to 17,750.91, the NAS Comp lost 1.13% to 4,763.22, and the S&P 500 finished at 2,063.37, down 18 pts.
Risk-off was the theme, as soft manufacturing figures coming from China and the UK fueled concerns over a global economic slowdown.
The DJIA tapped at late April low of 17,646 before recovering, but the negative tone is evident in the daily, as the benchmark index remained below its 20-Day SMA, and the technical indicators head South just below their mid-lines.
In the 4 hours: the 20-Day SMA accelerated its decline above the current mark, and below the 100-Day SMA, with the shortest at 17,797, now the 1st Resistance, whilst the Momentum indicator is flat around the 100 level, and the RSI turned lower around 42, increasing the risk of a Southward extension, on a break below 17,646.
DJIA at 17750.91, -0.78% is stable in the range of 17500-18100 despite deeper weakness in the global markets. It does however require a clear break above 18200-300 soon to negate the Bearish possibilities.
Support marks:17,713 17,646 17,574
Resistance marks: 17,797 17,861 17,912