Wednesday’s Technical Outlook for DJIA (.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.
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