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

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

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


US stocks finished sharply lower Thursday after data showed US GDP growth advanced at its slowest pace in 2 years and jobless claims rose more than expected.

The DJIA lost 210 pts, or 1.17%, to close at 17,830.76, recording the biggest 1-day fall since 11 February 2016.

The S&P 500 fell 19 pts, or 0.92%, to 2,075.81, the NAS Comp dropped 57 pts, or 1.19%, to 4,805.29.

On the data front

US GDP slowed to 0.5% in Q-1 according to the 1st advance estimate, missing expectations of 0.7% growth.

Separate data showed initial jobless claims rose more than expected to 257-K in the week ended 22 April, raising concerns over the economic health of the world’s largest economy.

The technical picture

The DJIA daily shows that the index fell below its 20-Day SMA for the 1st time in over 2 weeks, the technical indicators have turned due South, but are not yet breaking into negative territory.

In the 4 hours, the technical outlook is Bearish, given that the technical indicators maintain strong Bearish slopes well below their mid-lines, while the index is now below its 20 and 100-Day SMA’s.


DJIA at 17830.76, -1.17% was hurt by a weaker than expected Q-1 GDP growth data and now shows the initial signs of an extended pullback to 17500-400. If the correction fails to be contained at 17400, see 17200 next, or then Dow 16800 will come into view.
As I write this report (3:57a EDT) the DJIA mini June futures are trading at 17,755.

Support marks:17,775 17,730 17,651
Resistance marks: 17,904 17,985 18,046

Stay tuned…

Paul Ebeling

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