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

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

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

$DIA, $.DJI

US stocks closed in the Red, with the DJIA off 99 pts to end at 17,651.26. The NAS Comp extended its decline by 37 pts to finished at 4,752.64, the S&P 500 fell 12 pts to 2,051.12.

Mixed data in the US suggested the economy is struggling to slowly advance, with no signs of contraction, but not a strong pick up either.

Employment data disappointed, as the ADP survey printed 165-K Vs 200-K expected, while US productivity fell by a 1% annual rate in Q-1, marking the 4th decline in the past 6 Quarters.

The US trade deficit fell to its lowest in a year during March, resulting in 40.40-B.

The DJIA daily shows that the index extended further below its 20-Day SMA, the technical indicators gained additional Bearish momentum within negative territory, maintaining the risk towards the Southside for Thursday.

In the 4 hours, the 20-Day SMA crossed below the 100 and 200-Day SMAs above the current mark, reflecting the strong selling interest, the technical indicators flattened near oversold marks, rather reflecting the lack of volume after the close that suggesting a Southside exhaustion.

Commentary

DJIA at 17651.26, -0.56% is testing the lower end of the range 17500-18100 and now a bounce from the current marks cannot be ruled out. Otherwise, may see the Key support of 17100 in the next few sessions.

Support marks:17,604 17,530 17,440
Resistance marks: 17,692 17,758 17,812

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Stay tuned…

Paul Ebbeling

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