Tuesday’s Technical Outlook for DJIA (.DJI)
Wall Street finished higher Monday, after US Fed’s Chairwoman Janet Yellen reiterated that upcoming rate hikes are data dependent, also supported by rising Crude Oil prices.
The DJIA gained 113 pts, or 0.64%, to 17,920.33, the S&P 500 rose 10 pts or 0.49%, to finish at 2,109.49, its highest close YTD, and the NAS Comp finished + 26 pts, or 0.53%, to 4,968.71.
Ms. Yellen’s speech fueled the rally as she said further gradual increases in the federal funds rate will probably be appropriate, but stopped short from offering an indisputable sign of a June/July move.
The DJIA passed May’s high maintaining the Bullish tone seen on previous updates as the index has recovered above a now Bullish 20-Day SMA, and the technical indicators extended to fresh highs, holding on to their Bullish slopes.
In the 4 hours, the technical indicators have lost upward strength within Bullish territory, and are reflecting the ongoing consolidation near the highs rather than suggesting a Southward move in the US session.
DJIA at 17920.33, +0.64% rallied as expected and closed below the 1st resistance at 17935. A clear close above 17935 is needed to extend the near term rally to 18100-350.
As I write this report Tuesday at 2:50a EDT the DJIA mini futures for Jun 2016 are trading at 17,943.00 +28.00
Support marks: 17,885 17,821 17,770
Resistance marks: 17,964 18,010 18,084