- The Dow Jones Industrial Average slipped down during its recent trading at the intraday levels, recording losses for the third consecutive session, by -1.55%.
- It went down by -505.44 points, to settle at the end of trading at the level of 32,147.77, after declining in Tuesday's trading by -0.24 %.
The Dow Jones saw its biggest monthly percentage rise in October since 1976, but markets have been shaken in recent days by the awaited Federal Reserve's decision on interest rates, which came yesterday, Wednesday.
The central bank's Federal Open Market Committee pushed the funds rate into a range of 3.75% to 4%
"When determining the pace of future increases in the target range, the committee will take into account the cumulative tightening of monetary policy, the delays with which monetary policy affects economic activity and inflation, and economic and financial developments," they stated after the two-day meeting.
Federal Reserve Chairman Jerome Powell said at a press conference that the FOMC will need to see signs that inflation has slowed before considering next steps. Powell said he does not think the FOMC has over-tightened, and the focus will shift to how the price rises before holding it for some time.
"It's too early in my view for me to think or talk about pausing the rate hike," Powell said. “We have ways to go, we need to keep raising interest rates to get to that level of restriction.”
In economic data released earlier on Wednesday, payroll services firm ADP said the private sector added about 239,000 jobs in October. While economists polled by the Wall Street Journal earlier expected an increase of 195,000 jobs.
Dow Jones Technical Analysis
Technically, the index is trying with its recent declines to reap the profits of its previous rises, and also to try to gain positive momentum that may help it to rise again. At the same time it is trying to drain some of its clear overbought by the relative strength indicators, especially with the start of negative signals from them, as shown in the attached chart.
For a (daily) period, the positive support for its trades continued above its simple moving average for the previous 50 days, but in front of that the index remains moving along a corrective bearish trend line in the short term.
Therefore, our expectations suggest that the index will return with caution during its upcoming trading, provided that the 31,598.60 support level remains intact, to target the 33,272.30 resistance level.
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