The Dow Jones Industrial Average was colored red during its recent trading on the intraday levels, to incur sharp losses in its last sessions by -1.10%. The index lost about -365.85 points, settling at the end of trading at the level of 32,875.72, to erase the gains it witnessed with these losses. During the last two trading sessions, it recorded gains during Tuesday trading by 0.11%, in a week shortened due to the Christmas holiday that was spent on Monday, for the month of December and so far the Dow Jones index is down by about 5%.
On the economic front, the market has absorbed a fresh round of housing data, with the National Association of Realtors reporting on Wednesday a fresh dip in pending home sales for November, falling 4% for the month. While the State Street Investor Confidence Index fell to 75.9 in December, compared to a reading of 90.3 in November.
Stocks headed lower throughout December as investors worried about the Federal Reserve's hawkish outlook and the threat that the central bank might have to keep raising interest rates in the face of a slowing economy. It continues to be characterized by low trading volumes with almost no catalysts.
Dow Jones Technical Analysis
- Technically, the index is trying again to gain some positive momentum that may help it recover and rise again.
- This happened considering the continued positive support for the simple moving average for the previous 50-day period, to rely on it again in its recent trading, with the index being affected by its earlier breach of a bearish corrective slope line.
- In the short term, as shown in the attached chart for a period of time (daily), in addition to that, we notice the presence of positive signals in the relative strength indicators.
Therefore, our positive expectations surrounding the index are still being implemented, and we expect it to rise again during its upcoming trading, 32,582.00 provided that the support level remains stable, targeting the 34,281.36 resistance level.
Ready to trade our Dow Jones trading signals? Here are the best CFD brokers to choose from.