Thursday’s Technical Outlook for DJIA (.DJI)
Wall Street fell for a 5th day running, as investors sold stocks for safe havens assets due to a negative mood triggered by increasing Brexit fears persisted all through this Wednesday, though few believe that the vote will be Yes to exit the EU.
US stocks turned negative after the FOMC’s announcement closing in the Red.
The DJIA lost 34 pts or 0.20%, to finish at 17,640.17.
The S&P 500 Index fell 3 pts to close at 2,071.50.
The NAS Comp shed 8 pts, or 0.18%, to finish at 4,834.93.
As expected, the US Fed decided to keep the target for the fed funds unchanged at 0.250.50% in June, also lowering its economic growth forecast, but repeated that two rate hikes may still be likely for this year.
Once the US Fed got out of the picture, Brexit fears and risk aversion became the focus.
The daily for the DJIA shows that it held below its 20-Day SMA, but above Tuesday’s low, while the technical indicators are still in Bearish territory, with no clear directional strength, and indicating additional slides on a break below 17,592, the weekly low.
In the 4 hours, the index retreated sharply after failing to advance beyond a bearish 20-Day SMA, as the technical indicators turned sharply lower within Bearish territory, also indicating more Southside action.
DJIA at 17640.17, -0.20% closed almost flat after the FOMC meet, but the trend was not changed as the index looks like it is headed South towards 17400 in the days ahead. As I write this report the DJIA mini Sept futures are trading at DJIA mini -65.00 at 17,463.00. PE
Support marks: 17,592 17,529 17,462
Resistance marks: 17,698 17,770 17,854