The Dow Jones 30 has been choppy on Tuesday, as we continue to see a lot of external noise from interest rates, headlines, and overall risk appetite.
Dow Jones 30
The Dow Jones 30 has been noisy as we continue to see a lot of reaction to the interest rate markets, which of course are reacting to the situation in the Middle East, whether or not the United States and Iran can come to peace, and during the trading session on Tuesday we've seen the core CPI numbers in the United States coming out at 0.0% instead of the expected 0.2%.
This suggests that perhaps the Federal Reserve might be able to be a little bit more cautious about tightening monetary policy, and that, of course, tends to be very positive for stocks. The 52,000 level has offered a nice support level, and I think that is something that you need to keep in mind, as it's an area that I believe will remain important. I believe that the previous action shows just how much support it is.
Top Regulated Brokers
Key Technical Barriers and Interest Rate Influences
The 53,000 level above, I think, is a short-term barrier. If we could break above there on a daily close, that could open up the floodgates to much higher pricing. The 10-year yield in the United States has dropped a bit during the course of the trading session on Tuesday, mainly due to that CPI reading, so that helped. But if we see interest rates spike due to the noise coming out of the Middle East, that could turn things around and send indices lower. Ultimately, we are in a nice uptrend, and I think the uptrend is very much intact and something that you need to be paying close attention to. I remain a buyer.
Ready to trade the daily stock analysis? Here are the best CFD brokers to choose from.