Monday’s Technical Outlook for DJIA (.DJI)
Worldwide stocks dove Friday, with US indexes posting their largest intra-day declines YTD.
The DJIA closed the day 610 pts lower at 17,400.75.
The S&P 500 shed 75 pts, to end at 2,037.41.
The NAS Comp lost 4.12% or 202 pts, to 4,707.98.
The victory of the “Leave” campaign shocked the financial world and triggered the beginning of the long awaited correction, and the result will impact global economic growth.
Bank and technology related stocks suffered the most, although all sectors finished deep in the Red.
The DJIA dove down to 17,276 in futures trading and ahead of the open Friday.
The Dow pared losses around its 200-Day MA, testing it for the 1st time since early March of this year, and maintains a strong Bearish tone, which will likely accelerate on renewed selling interest below 17,325 the 19 May daily low.
In the 4 hours, the technical indicators resumed their declines after a limited upward move, heading now lower below the lows set at the beginning of the day, increasing the risk of a sustained decline Monday.
DJIA at 17400.75, -3.39% is testing the 3-month low at 17350, below which the support of 17200-150 is expected to contain the decline in the near term. next Key support comes at 16800. As I write this report the DJIA Sept futures are -81.00 (17,166) at 6:07a EDT.
Support marks: 17,325 17,276 17,220
Resistance marks: 17,448 17,495 17,553
Have a terrific week.
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