- The Dow Jones Industrial Average rose during its recent trading on intraday levels, to achieve gains in its last sessions by 0.53%.
- It added about 176.44 points to the index, settling at the end of trading at the level of 33,203.94, after its decline during Thursday's trading by -1.05%.
- During the past week, the index rose by 0.86%, as this is the first weekly gain in three weeks, during the month of December. Until that moment, the index fell by 4.00%, on its way to recording the worst year for the index since the mortgage crisis in 2008.
Markets are closed on Mondays for the Christmas holidays.
On the economic front, investors digested the latest figures on personal income and spending, as income rose 0.4% in November, while spending rose 0.1%.
Meanwhile, the report's measure of inflation, the personal consumption expenditures price index, came in cooler than expected, rising 0.1% compared to expectations of 0.2%. On an annual basis, the reading rose to 5.5%. The core PCE price index advanced by 0.2%, which is up 4.7% from last year.
The University of Michigan Consumer Sentiment Index showed an improvement, the number rising to 59.7 compared to the previous estimate of 59.1 and the November number of 56.8.
While durable goods orders for November fell by 2.1%, this followed a rate hike of 0.7% in October. After economists had expected a decline of 0.6%.
Friday also saw the release of new housing market stats, new home sales rose 5.8% in November, beating expectations. However, concerns persisted that the Fed will maintain its hawkish guidance for next year after GDP growth and quarterly PCE inflation figures were revised higher yesterday.
Dow Jones Technical Analysis
Technically, the index benefited from its reliance on the support of its simple moving average for the previous 50-day period. It gained it some positive momentum that helped it achieve its recent gains, especially with the start of positive signals in the relative strength indicators, after reaching oversold areas, considering the dominance of a corrective wave.
Therefore, our expectations indicate more rise for the index during its upcoming trading, provided that the important 32,582.00 support level remains intact. It targeted once again the 34,281.36 pivotal resistance level, in preparation to attack it.
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