- The Dow Jones Industrial Average declined during its recent trading on the intraday levels, to record losses for the fourth consecutive day in trading on Monday, by -0.49%.
- It lost about 162.92 points, to settle at the end of trading at the level of 32,757.55, and declined in last Friday’s trading by a percentage.
- It reached -0.85%, recording a second consecutive weekly loss of -1.70%.
Wall Street closed lower on Monday for the fourth consecutive session, as investors shied away from riskier bets on fears that the Fed's tightening campaign could tip the US economy into recession.
Monetary policy decisions and comments from the European Central Bank and Bank of England also added to concerns that inflation will continue to rise. While further tightening from major central banks could lead to recession.
This week will be the last full trading week of the year, as the markets will be closed next Monday due to the Christmas holiday.
Monday's economic calendar remains light, with the NAHB Housing Market Index coming in at 31, below the consensus figure of 34 that economists had expected. Housing is one of the most rate-sensitive parts of the US economy, and Fed Chair Powell's relentless statements about raising interest rates have not helped the sector.
Dow Jones Technical Analysis
Technically, the index continued its decline in its recent trading as an attempt to search for an upward bottom from which to base it that might help it gain the necessary positive momentum to restore its recovery and rise again. It re-tested the bearish corrective slope line that the index had breached earlier in the short term, as shown in the figure.
The attached chart is for a period of time (daily), and at the same time, it is not based on the support of its simple moving average for the previous 50-day period. In addition, we notice that the relative strength indicators have reached highly oversold areas, in an exaggerated manner compared to the movement of the index.
Therefore, our expectations are still suggesting a scenario for the index to rise again during its upcoming trading, provided that the 32,260.60 support remains stable, to target once again the important 34,281.50 resistance level, in preparation to attack it.
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