The Dow Jones Industrial Average advanced slightly during its recent trading on intraday levels, to achieve slight gains in its last session by 0.01%. It gained about 3.07 points only, to settle at the end of trading at the level of 33,852.54, after declining during Monday's trading by -1.45 %.
US Consumer Confidence for November fell to its lowest level in four months, as inflation, higher interest rates and recession fears continue to dampen consumer sentiment.
While the US S&P Case-Shiller house price index took a look at the US housing market which remains under pressure, the Case-Shiller 20 price index for 20 cities fell 1.2% in September, marking the third consecutive monthly decline.
Investors will now turn their attention to Wednesday's speech from Federal Reserve Chairman Jerome Powell who will be speaking at the Brookings Institution on the outlook for the economy, for more clues about the Fed's rate hike policy.
The Fed has raised interest rates four times in a row by 75bp and is expected to cut the pace to a 50bp move in December.
Looking ahead to the rest of the week, the US government will release several reports on the labor market. Including the October job openings later Wednesday, followed by the closely watched November employment report on Friday.
Dow Jones Technical Analysis
Technically, the index is 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). Positive support for its trading above its simple moving average continued for the previous 50-day period, and the index has retreated in its recent trading because of the stability of the 34,281.36 resistance level. Negative signals are starting to appear in the relative strength indicators, after reaching highly overbought areas, to try to gain positive momentum that might help it breach that resistance.
Therefore, our expectations indicate more rise for the index during its upcoming trading, as long as the 33,248.60 support remains intact. It will target once again the 34,281.36 resistance level, in preparation to attack it.
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