- The Dow Jones Industrial Average slid down during its last trading on intraday levels, to incur strong losses in its last sessions by -1.40%.
- It lost about -482.78 points, to settle at the end of trading at the level of 33,947.11, after rising slightly during Friday's trading by 0.10%.
- It ended a volatile week in which the index posted gains of 0.24%, but for the year the index is declining so far by -0.96%, days before its end.
Investors' focus now is on the Federal Open Market Committee meeting to set interest rates, scheduled for December 13-14, the last meeting of the year. The central bank attempts to control inflation, which has reached its highest levels in several decades, by raising more. interest rates quickly.
The Dow Jones fell along with the rest of the broader market on Monday as investors feared better-than-expected data from the services sector, and re-evaluated whether the Federal Reserve could raise interest rates for longer.
The ISM Purchasing Managers' Index rose to 56.5 last month from 54.4 in October, while the Wall Street consensus was for a reading of 53.5. (A reading above 50 indicates expansion; the 12-month average came in at 57.2.)
In other economic data, the latest global services PMI of Standard & Poor's in the US for November rose to 46.2 from 46.1, but remained in contraction territory.
Monday's ISM services figure surprised some as it suggests that the economy is still going healthy and strong in the long term, and that the Fed will have to slow the economy more than expected in 2023.
Dow Jones Technical Analysis
Technically, the recent decline of the index came as a result of the stability of the important and stubborn 34,281.36 resistance level. Amid the abundance of negative signals in the relative strength indicators, the index tries with this decline to gain some positive momentum that may help it to recover and break through that resistance.
This comes in light of the index being affected by its earlier breach of a bearish corrective slope line in the short term. This is shown in the attached chart for a (daily) period, with the positive pressure continuing for its trading above its simple moving average for the previous 50-day period.
Therefore, our expectations suggest that the index will rise again during its upcoming trading, provided that it first breaches the 34,281.36 resistance level to then target the 35,372.26 resistance level.
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