The Dow Jones industrial index continued to decline in its recent trades,registering record losses for the third session in a row. The index fell by 0.47 percent, losing about 154.02 points and settling at the end of trading at the level of 32,909.60, after falling by 1.91 percent on Monday.
New home sales in the United States fell by 12.6 percent, settling at the seasonally adjusted rate of 511,000 homes in July, after being at 585,000 homes in the previous month according to data released by the Commerce Department on Tuesday. Analysts polled by the Wall Street Journal expected new home sales to reach 574,000 homes in July.
The S&P Global US manufacturing PMI fell to 51.3 in August after being at 52.2 in July, a 25-month low, while the services PMI fell to 44.1 in August from 47.3 in July, well below the 49.8 that the analysts expected.
Stocks fell in the final sessions ahead of this week's annual central bank meeting in Jackson Hole, where Federal Reserve Chairman Jerome Powell is expected to reinforce a strong commitment to ending an inflation that has hit four-decade highs.
Traders are now divided between expecting a 50 basis point interest rate hike and a 75 basis point hike by the central bank, after many policymakers recently disputed the bearish outlook and reaffirmed the Fed's commitment to fighting inflation.
Dow Jones Technical Outlook
The index continues its decline along a main downward trend line in the medium term, as shown in the attached chart for a period of time (daily). The continuation of the negative signals in the relative strength indicators causes the index to stabilize in its recent trades below the main resistance level of 33,000. We observe the continuation of the positive pressure for its trades above the simple moving average for the previous 50-day period.
Our expectations point to the continued bleeding of losses for the index during its next trades, especially as long as it remains stable below the 33,000 level, to target the pivotal support level of 32,272.65.
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