- The Dow Jones Industrial Average fell in its first trading session in 2023, recording losses in a session characterized by volatility by -0.03%.
- The index lost about -10.88 points, to settle at the end of trading at the level of 33,136.38, after recording losses in Friday’s trading by 1%.
- It reached -0.22% at the end of the worst trading year for the index since the financial crisis of 2008.
The year started with the first US economic data from the S&P US manufacturing PMI for December, which showed a reading of 46.2, down from 47.7 the previous month. Construction spending in November rose 0.2%, after losses. Revised by 0.2% in October.
Later in the week, investors will await the release of minutes from the minutes of the last December FOMC meeting on Wednesday. It will be scrutinized for clues regarding how high-interest rates will be, and how long they will remain, the meeting at which the central bank raised interest rates by 50 basis points after four consecutive increases of 75 basis points.
A slew of economic data including the ISM manufacturing index, and Friday's December jobs report could give the Fed reason to ease its monetary tightening. However, the data so far has shown that the market remains strong despite the interest rate hike.
Dow Jones Technical Analysis
Technically, the index is trying in its recent trading to gain some positive momentum that may help it to recover and rise again, to remain with this recent closing based on the support of its simple moving average for the previous 50-day period. This happened amid positive signals in the relative strength indicators and considering its impact on the breach of a bearish corrective slope line. earlier in the short term, as shown in the accompanying (daily) time period chart.
Therefore, we still expect the index to rise during its upcoming trading, provided that the 32,582.00 support level remains intact, to target once again the pivotal and stubborn 34,281.36 resistance level, in preparation to attack it.
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