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

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

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

$DIA, $DJI

Thursday, US stocks ended the day sharply lower with the DJIA losing 113 points to close the day at 17,982.52, hit by poor earnings reports, and the fact that ECB’s Draghi ruled out “helicopter money” saying that policy makers have never considered start printing money.

The Nasdaq fell 0.5% to end the day at 4,945.89, and the S&P faded from YTD highs, -10 pots to close at 2,091.48.

On the the daily, the benchmark index is still well above its 20-Day SMA, the technical indicators have retreat some within positive territory.

In the 4 hours chart the risk is now towards the Southside, as the index broke below its 20-Day SMA, the technical indicators are headed South within negative territory.

Commentary

DJIA at 17982.52, -0.63% has gained just 0.47% so far this week with Friday’s session remaining. Trend is still up but the Bullish momentum is soft. Failure to break above 18300 very soon may increase the chances of a breakdown below the support zone of 17800-500. PE

Support marks:17,963 17,902 17,827
Resistance marks: 18,023 18,094 18,171

Stay tuned…

Paul Ebeling

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