Wednesday’s Technical Outlook for DJIA (.DJI)

Wednesday’s Technical Outlook for DJIA (.DJI)

Wednesday’s Technical Outlook for DJIA (.DJI)

$DIA, $.DJI

The Wall Street rollercoaster was full on Tuesday, as all 3 US major stock market indexes reversed Monday’s gains.

The DJIA fell 180 pts to close at 17,529.90, the NAS Comp fell 1.25%, to 4,715.72 and the S&P 500 shed 0.94% to finish at 2,047.21.

Wall Street was up on the day until the release of US CPI figures, much better-than-expected, which resulted in speculative interest taking profits from latest gains, on renewed expectations of a Fed rate hike as early as June this year.

The initial slide turned into a selloff in the DJIA that fell down to 17,464, a Key support mark, and then bounced modestly off of the low.

The daily shows that the DJIA remained capped by a Bearish 20-Day SMA, as the technical indicators retreated from their mid-lines, increasing the risk of a Southside breakout.

In the 4 hours: the index is now well below its MA’s, as the technical indicators turned North within Bearish territory reflecting the bounce and not suggesting a coming recovery.

Commentary

The DJIA at 17529.98, -1.02% retested Key support at 17,500 17,464), the lack of Bearish momentum suggests the Dow spends the rest of the week ranged at 17350-800.

Support marks: 17,460 17,396 17,325
Resistance marks: 17,588 17,642 17,710

The following two tabs change content below.

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.

You must be logged in to post comments :  
CONNECT WITH